– Smith & Nephew Plc, Europe’s biggest maker of artificial hips and knees, agreed to buy closely held Healthpoint Biotherapeutics for $782 million in cash to expand offerings of wound-care treatments.
The acquisition of Fort Worth, Texas-based Healthpoint will enable Smith & Nephew to enter the $1 billion market for “bioactive” wound healing, the London-based company said in a statement today. Healthpoint will generate sales of about $190 million in 2012 and is growing at a “double-digit” percentage rate, Smith & Nephew said.
“Strategically, it reinforces our advanced wound management division by giving us a strong position in the fast-growing area of bioactive wound care treatment,” Smith & Nephew Chief Executive Officer Olivier Bohuon said in the statement. “It brings material revenues from a fast-growing product range, an attractive pipeline, and commercial and R&D capabilities upon which we will build.”
The purchase will be “broadly” neutral to Smith & Nephew’s adjusted earnings per share next year, and will add to profit after that, the company said.
Healthpoint makes Santyl, an ointment to remove dead tissue in wounds.
Deutsche Bank AG advised Smith & Nephew, and BofA Merrill Lynch and JPMorgan Chase & Co. advised Healthpoint.