Stryker to Buy Pivot Medical

Shortly after announcing plans to acquire German company Berchtold Holding, Kalamazoo, Mich.-based orthopedic and neurotechnology device company Stryker Corporation have now made a deal to buy Pivot Medical Inc. in an all cash transaction. Pivot is a privately held business selling innovative products for hip arthroscopy with operating facilities in Sunnyvale, Calif.

Pivot was founded in 2007 with a focus on hip arthroscopy procedures treating femoroacetabular impingement syndrome. Pivot has a platform of instruments and implants designed to efficiently access and restore the mobility of the hip with minimal incisions.

Hip arthroscopy is a rapidly growing procedure in sports medicine resulting from improved procedural solutions and growing demand for less invasive solutions. According to Stryker, Pivot’s products will complement Stryker’s existing sports medicine portfolio and provide Stryker’s customers with a comprehensive offering to address the challenges of sports medicine procedures.

“The addition of Pivot Medical furthers our commitment to develop Stryker’s sports medicine business and provides our customers with additional enabling products and solutions,” said Timothy J. Scannell, group president of medsurg and neurotechnology. “This acquisition will allow us to combine Pivot’s innovative platforms in hip arthroscopy with Stryker’s knee and shoulder sports medicine solutions, and full line of arthroscopy visualization and tissue resection devices.”

The closing of the transaction is subject to customary closing conditions. Upon closing, the transaction is expected to be neutral to Stryker’s 2014 earnings per share excluding acquisition, integration-related and intangible amortization charges. The transaction is expected to close in the first quarter of 2014.