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Smith & Nephew to cut a deal with Osiris
Posted on Wednesday, 13 March 2019 12:05
Smith & Nephew is adding to its operations by acquiring US-based Osiris Therapeutics, a manufacturer of regenerative medicine products, for USD 660.00 million.
Under the terms of the transaction, the buyer is offering USD 19.00 per share in cash, representing a premium of 0.6 per cent to the target’s close of USD 18.88, as well as a 37.0 per cent premium over its 90-day volume weighted average price, prior to the announcement yesterday.
Furthermore, Smith & Nephew have also entered into a tender and support agreement with the co-founder of Osiris, Peter Friedli, in which he will grant 30.0 per cent of Osiris’ stock in favour of the purchase.
The acquisition, funded by the buyer’s existing cash and debt facilities, is expected to complete in the second quarter of 2019, subject to the usual closing conditions and relevant antitrust clearances.
Established in 1992, Osiris researches and develops regenerative medical products in the orthopaedic, sports medicine and wound care fields.
Its technology includes cryopreservation, in which living cells and tissues are stored at a low temperature and preserves the native tissue’s components and functionalities.
This method is applied to Osiris’s products including, Grafix, a skin substitute using cryopreserved placental membrane that can be applied to wounds with exposed bone and tendons.
For the nine months ended 30th September 2018, the target booked USD 102.00 million in revenue, up from USD 85.94 million in the corresponding period of 2017.
Simon Fraser, president of advanced wound management at Smith & Nephew, said the deal would expand its tissue repair portfolio, as well as increase its customer base.
As a result of the transaction, Osiris’ 360 employees will join the buyer upon completion of the purchase.
Headquartered in London, Smith & Nephew is billed as a leading portfolio medical company, with a presence in around 100 countries worldwide.
Its operations are focused in three areas; advanced wound management, orthopaedics and trauma, and sports medicine.
The company provides hip and knee replacements for patients with conditions such as arthritis, as well as a range of dressings under its ANTICOAT brand, which treats pressure ulcers, diabetic foot ulcers and burns.
For the nine months ended 29th September 2018, Smith & Nephew posted revenue of USD 3.61 billion, up from USD 3.49 billion in the corresponding period of 2017.
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