NEW YORK (AP) -- Medical device maker Stryker said Monday it will buy bone and joint replacement maker Small Bone Innovations for up to $375 million in cash.
Stryker said the deal will cost it as much as $285 million after tax benefits. Small Bone Innovations makes products that are used to treat conditions that affect the ankle, fingers, wrist, and elbow. Its main product is the STAR Ankle system, a total ankle replacement device with three pieces =that does not need cement. Stryker said Small Bone Innovations had $48 million in product sales in 2014.
Small Bone Innovations is based in Morrisville, Pennsylvania, with facilities in France and Germany. Stryker, of Kalamazoo, Michigan, said it expects to complete the acquisition during the third quarter. The company said the purchase will reduce its 2014 net income by 2 cents per share excluding one-time charges.
Needham & Co. analyst Michael Matson said the purchase makes Stryker more competitive in the foot and ankle device market, and STAR Ankle "fills a noticeable hole in Stryker's foot and ankle portfolio."
Shares of Stryker Corp. rose 28 cents to $84.25 in afternoon trading.