Stryker Completes Berchtold Acquisition - Analyst Blog

Stryker Corporation SYK revealed that the company has completed the previously announced acquisition of German surgical tools firm, Berchtold Holding. The deal is valued at $172 million.

Berchtold, a privately-held business, is a provider of surgical infrastructure equipment with operating facilities in Germany and the U.S. Berchtold's product portfolio comprises surgical tables, equipment booms, and surgical lighting systems committed towards maximizing efficiency and safety in operating rooms and ICUs.

The Berchtold acquisition is expected to boost Stryker's fast growing endoscopy division and operating room equipment product portfolio by adding complementary solutions. The deal will allow Stryker to strengthen its portfolio and broaden its hospital product offerings.

The deal is expected to be neutral to Stryker's 2014 earnings per share excluding acquisition, integration-related and intangible amortization charges.

In Feb, Stryker announced agreements to acquire Berchtold Holding as well as U.S.-based developer of hip arthroscopy products, Pivot Medical, Inc. The company has already closed the acquisition of Pivot Medical in Mar.

Pivot, a privately held business, sells products for hip arthroscopy with operating facilities in Sunnyvale, Calif. It specializes in hip arthroscopy procedures treating femoroacetabular impingement syndrome (FAI). Pivot's platform of instruments and implants provide efficient access to and restore mobility of the hip with minimal incisions.

Pivot's offerings are expected to complement Stryker's existing Sports Medicine portfolio and will provide Stryker's customers with more comprehensive solutions to address certain challenges faced during current Sports Medicine procedures. However, the deal is expected to be neutral to Stryker's 2014 earnings per share, excluding acquisition, integration-related and intangible amortization charges.

In Jan this year, Stryker also announced that it will buy Irvine, CA-based Patient Safety Technologies for $120 million in order to utilize Patient Safety's device to lessen the risk of surgical sponges being left in patients after surgery. Recently, the company settled a lawsuit over the impending deal where it has agreed to make additional disclosures to appease shareholders.

In Dec last year, Stryker completed its acquisition of MAKO Surgical for $1.65 billion. The acquisition of MAKO allowed Stryker to get hold of the latter's advanced robotic arm technology known as Robotic Arm Interactive Orthopedic System, or RIO. The technology helps orthopedic surgeons in performing knee and hip joint replacement surgeries.

Stryker currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the medical products companies that currently worth a look include Enzymotec Ltd. ENZY, Edwards Lifesciences Corp. EW, and Owens & Minor Inc. OMI. Enzymotec carries a Zacks Rank #1 (Strong Buy), while both Edwards Lifesciences Corp. and Owens & Minor retain a Zacks Rank #2 (Buy).