Tornier-Wright Medical Deal Signed for US$3.3 Billion
Published By : 29 Oct 2014 | Published By : QYRESEARCH
In a deal worth US$3.3 billion, Wright Medical Group Inc. has bought orthopedic-device manufacturer Tornier NV. The all-stock agreement was announced by the two companies on Monday.
Wright is an orthopedic medical device maker headquartered in Memphis, U.S. The company designs and develops reconstructive joint medical devices and deals across the Unites States as well as around the globe. When the deal closes, Wright will move its headquarters to Netherlands. Post the deal, Wright investors will own 52% of the new combined company and Tornier shareholders will own 48%.
Based in Netherlands, Tornier manufactures medical devices that specialize in the treatment of musculoskeletal injuries. Tornier currently sells over 70 different products in more than 35 countries across the globe. The company’s U.S. headquarters as well as top executives are based out of Bloomington. This office will now serve as the combined company’s U.S. headquarters for the upper extremity business division. According to Business Journal, Tornier has been ranked as the 10th largest medical technology company in Minnesota. In 2013, the company generated revenues worth US$311 million while Wright Medical Group generated US$242 million in revenue in the same year.
The combined company will be led by Wright’s CEO and president Robert Palmisano and will operate under the name Wright Medical. Tornier’s current CEO David Mowry will be the chief operating officer and president of the newly formed Wright Medical.
Speculations made by market experts suggest that the Wright-Tornier deal is one of many other acquisitions which have been partially prompted by inversion deals, or specifically by potential tax advantages.