Stryker To Pay Up To $375 Million For Ankle Replacement Company

Stryker SYK agreed to pay up to $375 million to acquire Small Bone Innovations.

Stryker said its net cost will be up to $285 million after including resulting tax benefits, while 2013 sales of the products to be acquired from Small Bone were about $48 million. Stryker's 2013 sales were $9.02 billion.

The transaction, set to close in the third quarter, will dilute Stryker's 2014 earnings by $0.02 per share, the company said.

Products to be acquired include Small Bone's ankle replacement system called STAR, enabling Stryker product portfolio to comprehensively address foot and ankle procedures. Additional assets include finger, wrist, and elbow products, further broadening Stryker's upper extremity product offerings.

Stryker closed Friday up 0.76 percent at $83.97. Its shares are up nearly 30 percent in the past 12 months.