Stryker Buys Implant And Endoscopic Instrumentation Maker Instratek
By Jof Enriquez,
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Continuing a cadence of acquisitions over the past year, orthopaedic medtech manufacturer Stryker has acquired the assets of Instratek (Restore Surgical LLC) for an undisclosed amount in a transaction expected to close by year's end. The deal comes just a week after Stryker bought meniscal repair company Ivy Sports Medicine.
Houston, Texas-based Instratek specializes in the development, manufacturing, and marketing of leading-edge orthopaedic implants and endoscopic instrumentation for the field of extremity surgery. Its products include staple and hammertoe implants, as well as minimally invasive soft-tissue recession instrumentation for foot, ankle, and upper extremity procedures. The 24-year old device company said in December that it hit its tenth straight year of record revenue growth.
"This acquisition supports our commitment to growth in extremities with products that complement our existing portfolio, strengthen our leadership in the forefoot segment and provide immediate access into minimally invasive soft tissue recession procedures," said David Floyd, Group President, Orthopaedics, Stryker, in a news release.
Following compliance to customary closing conditions, the deal is expected to close in the fourth quarter of 2016.
Kalamazoo, Michigan-based Stryker has been very active on the M&A front this year.
In February, the company closed large deals for hospital supplies provider Sage Products ($2.78 billion) and emergency medical services (EMS) equipment manufacturer Physio-Control ($1.3 billion), and purchased Synergetics’ neurology portfolio for an undisclosed amount.
In April, it added device startup SafeWire's Y-Wire guidewire and Tiger Jamshidi Needle Family portfolio to bolster its offerings for minimally-invasive spine (MIS) surgery, then completed the acquisition of Becton Dickinson's (BD) CareFusion vertebral compression fracture (VCF) portfolio used in vertebroplasty and vertebral augmentation procedures.
Stryker CEO Kevin Lobo told analysts in an earnings call in April that Stryker has "significant capacity to do more M&A" and that he "won't hesitate to pull the trigger on new deals" especially on tuck-in deals that fill gaps in Stryker's portfolio.
Since his pronouncement, Stryker has acquired United Kingdom-based Stanmore Implants ($52 million) and New Jersey-based Ivy Sports Medicine for an undisclosed amount. Stanmore makes custom and off-the-shelf implants in limb salvage surgery for oncology patients, while Ivy Sports markets the only FDA-approved collagen meniscus implant (CMI) on the market.