Four months ago, I fretted that Stryker's (NYSE:SYK) acquisition of SBi reduced the pool of eligible buyers to acquire Wright Medical Group (NASDAQ:WMGI) and/or Tornier (NASDAQ:TRNX).
A lot of bullishness on these companies was based on their
attractiveness as M&A targets for larger ortho companies, but the
two companies have instead decided to come together to create a leading
enterprise in the fast-growing extremities segment.
I have mixed
feelings on this move as a Wright Medical Group shareholder. Wright
Medical's somewhat disappointing third quarter sales result suggests
that there's still more self-improvement to be done and Tornier has been
working through sales restructuring efforts of its own. That said,
Wright Medical CEO Bob Palmisano is a proven leader in the med-tech
space and the prospects of a company with leading technology in both
upper and lower extremities is appealing, not to mention the fact that
the impending approval of Augment brings hundreds of millions of
potential revenue into play.
Read more here:
Did Wright Medical Make The Right Move?
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