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Smith & Nephew announces agreement to acquire ArthroCare
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Smith & Nephew announced the execution of a definitive agreement to acquire medical device company ArthroCare Corp for $48.25 per ArthroCare share in cash, a total consideration of approximately $1.7 billion and an enterprise value of $1.5 billion.
“This is a compelling opportunity to add ArthroCare’s technology and highly complementary products to further strengthen our sports medicine business,” Olivier Bohuon, chief executive officer of Smith & Nephew, stated in a company press release. “Together, we will be able to generate significant additional revenue from the more comprehensive portfolio, combined sales force and Smith & Nephew’s global footprint. With this transaction, we are again accelerating our strategy to rebalance Smith & Nephew towards higher growth.”
According to the release, the acquisition will be subject to customary conditions, including a vote of ArthroCare’s shareholders and governmental clearances. Pending the satisfaction of such customary conditions, Smith & Nephew anticipates closing the transaction in mid-2014. ArthroCare will be integrated swiftly to minimize disruption to customers.
“ArthroCare and Smith & Nephew know each other well from our licensing and supply arrangements, and this is a natural transaction for both companies. The board believes that this transaction is in the best interest of our shareholders,” David Fitzgerald, president and chief executive officer of ArthroCare, stated in the release.