Smith & Nephew in Play as Device Makers Combine: Real M&A
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Smith & Nephew Plc, long speculated to be a takeover candidate, has finally been put in play thanks to a merger between two of its competitors.
Stryker Corp. Chief Executive Officer Kevin Lobo said yesterday that his $31 billion company has been evaluating a purchase of London-based Smith & Nephew, which would expand its share of the market for artificial hips and knees. The news followed an April announcement that their rivals Zimmer Holdings Inc. and Biomet Inc. are merging to create an entity that will overtake Stryker as the No. 2 maker of orthopedic devices. That may have put pressure on Stryker to weigh a bid for Smith & Nephew, according to Summer Street Research Partners.