Stryker announces definitive agreement for the sale of its U.S. spinal implants business and plans to sell related international business
Stryker (NYSE:SYK) has announced a definitive agreement to sell its U.S. spinal implants business to Viscogliosi Brothers, , which will create a new company called VB Spine, . The transaction includes a binding offer to acquire Stryker's spinal implants business in France and plans to sell related international operations.
After closing, VB Spine will become a strategic partner to Stryker with exclusive access to Mako Spine and Copilot for use with VB Spine's implants. The deal aims to enhance focus for both companies and is expected to achieve faster growth and deliver greater value for stakeholders.
The transaction is expected to close in the U.S. in the first half of 2025, subject to customary closing conditions. Barings, will serve as an investor and financial partner to Viscogliosi Brothers in this transaction.
Stryker (NYSE:SYK) ha annunciato un accordo definitivo per vendere il suo business di impianti spinali negli Stati Uniti a Viscogliosi Brothers, creando una nuova società chiamata VB Spine. La transazione include un'offerta vincolante per acquisire il business degli impianti spinali di Stryker in Francia e prevede la vendita delle operazioni internazionali correlate.
Dopo la chiusura, VB Spine diventerà un partner strategico per Stryker con accesso esclusivo a Mako Spine e Copilot per l'uso con gli impianti di VB Spine. L'accordo mira a migliorare la concentrazione per entrambe le società ed è previsto che porti a una crescita più rapida e a un maggiore valore per gli stakeholder.
Si prevede che la transazione si chiuda negli Stati Uniti nella prima metà del 2025, soggetta alle consuete condizioni di chiusura. Barings servirà come investitore e partner finanziario per Viscogliosi Brothers in questa transazione.
Stryker (NYSE:SYK) ha anunciado un acuerdo definitivo para vender su negocio de implantes espinales en EE. UU. a Viscogliosi Brothers, creando una nueva empresa llamada VB Spine. La transacción incluye una oferta vinculante para adquirir el negocio de implantes espinales de Stryker en Francia y planes para vender operaciones internacionales relacionadas.
Después del cierre, VB Spine se convertirá en un socio estratégico de Stryker con acceso exclusivo a Mako Spine y Copilot para su uso con los implantes de VB Spine. El acuerdo busca mejorar el enfoque de ambas empresas y se espera que logre un crecimiento más rápido y ofrezca un mayor valor a los interesados.
Se espera que la transacción se cierre en EE. UU. en la primera mitad de 2025, sujeta a las condiciones de cierre habituales. Barings actuará como inversor y socio financiero de Viscogliosi Brothers en esta transacción.
Stryker (NYSE:SYK)는 미국의 척추 임플란트 사업부를 Viscogliosi Brothers에 판매하는 최종 계약을 체결했다고 발표했습니다. 이를 통해 VB Spine라는 새로운 회사가 설립됩니다. 이번 거래에는 Stryker의 프랑스 척추 임플란트 사업을 인수하기 위한 구속력 있는 제안이 포함되며, 관련된 국제 운영 매각 계획도 포함됩니다.
거래가 종료되면 VB Spine은 Stryker의 전략적 파트너가 되어 Mako Spine 및 Copilot에 대한 독점적인 접근 권한을 가지게 됩니다. 이 계약은 양사에 대한 집중도를 높이는 것을 목표로 하며, 더 빠른 성장과 이해관계자에게 더 큰 가치를 제공할 것으로 예상됩니다.
이번 거래는 2025년 상반기 내에 미국에서 종료될 것으로 예상되며, 일반적인 종료 조건이 적용됩니다. Barings는 이번 거래에서 Viscogliosi Brothers의 투자자 및 금융 파트너로 활동할 것입니다.
Stryker (NYSE:SYK) a annoncé un accord définitif pour vendre son activité d'implants spinaux aux États-Unis à Viscogliosi Brothers, ce qui créera une nouvelle société appelée VB Spine. La transaction comprend une offre contraignante pour acquérir l'activité d'implants spinaux de Stryker en France et prévoit de vendre des opérations internationales connexes.
Après la clôture, VB Spine deviendra un partenaire stratégique de Stryker avec un accès exclusif à Mako Spine et Copilot pour une utilisation avec les implants de VB Spine. Cet accord vise à améliorer la concentration des deux entreprises et devrait permettre d'atteindre une croissance plus rapide et de fournir une plus grande valeur aux parties prenantes.
La transaction devrait être clôturée aux États-Unis dans la première moitié de 2025, sous réserve des conditions de clôture habituelles. Barings agira en tant qu'investisseur et partenaire financier de Viscogliosi Brothers dans cette opération.
Stryker (NYSE:SYK) hat eine endgültige Vereinbarung zur Verkaufs seines US-Geschäfts mit Rückenimplantaten an Viscogliosi Brothers angekündigt, wodurch ein neues Unternehmen namens VB Spine entsteht. Die Transaktion beinhaltet ein verbindliches Angebot zum Erwerb des Rückenimplantatgeschäfts von Stryker in Frankreich sowie Pläne für den Verkauf verwandter internationaler Operationen.
Nach dem Abschluss wird VB Spine ein strategischer Partner von Stryker und erhält exklusiven Zugang zu Mako Spine und Copilot zur Verwendung mit den Implantaten von VB Spine. Das Geschäft zielt darauf ab, die Fokussierung beider Unternehmen zu verbessern und wird voraussichtlich schnellere Wachstumsraten erreichen und den Stakeholdern einen höheren Wert bieten.
Die Transaktion wird voraussichtlich in der ersten Hälfte des Jahres 2025 in den USA abgeschlossen, vorbehaltlich der üblichen Abschlussbedingungen. Barings wird in dieser Transaktion als Investor und finanzieller Partner von Viscogliosi Brothers fungieren.
- Strategic partnership maintaining exclusive access to Mako Spine and Copilot technologies
- Expected faster growth through increased business focus
- Potential for improved stakeholder value through specialized operation
- Divestiture of entire spinal implants business unit indicates reduction in market presence
- Loss of direct revenue stream from spinal implants division
Insights
This strategic divestment marks a pivotal shift in Stryker's portfolio optimization strategy, reflecting a sophisticated approach to value creation. The transaction structure is particularly noteworthy for three key aspects: maintaining technology synergies through exclusive access agreements, potential international market expansion and partnership with spine industry specialists.
The deal's structure reveals Stryker's intelligent capital allocation strategy. By divesting the spinal implants business while retaining strategic technology partnerships (Mako Spine and Copilot), they're effectively monetizing a non-core asset while preserving future value creation opportunities. This approach typically improves ROIC (Return on Invested Capital) and enables better resource allocation to higher-growth segments.
The selection of Viscogliosi Brothers as the acquirer is strategically significant. Their deep expertise in the neuro-musculoskeletal space suggests potential for accelerated growth through:
- Enhanced focus on surgeon-centric innovation
- Specialized sales channel optimization
- Faster decision-making in a standalone structure
The phased international market approach, starting with France and expanding to other markets, indicates a well-planned global transition strategy that minimizes operational disruption and regulatory complications. This methodical approach typically results in better execution and value preservation during the transition period.
This transaction reshapes the competitive dynamics in the spine market, creating a specialized pure-play competitor while maintaining technological collaboration through the Mako Spine and Copilot partnership. The deal structure demonstrates sophisticated market understanding, balancing competitive independence with technological synergies.
The formation of VB Spine as an independent entity could accelerate innovation in several ways:
- Focused R&D investment in spine-specific solutions
- Streamlined decision-making for product development
- Enhanced surgeon collaboration opportunities
- Specialized market response capabilities
The retention of Mako Spine and Copilot access is particularly significant for market dynamics. This arrangement ensures continued technological advancement while allowing both entities to focus on their core strengths. For Stryker, this means maintaining presence in the high-growth robotics and navigation segment while divesting the more commoditized implant business.
The deal's impact on market competition will likely be positive, as it creates a more focused competitor while maintaining technological collaboration. This structure typically leads to increased innovation and better customer service, benefiting the entire spine market ecosystem.
Portage, Michigan, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Stryker (NYSE:SYK), a global leader in medical technologies, announced today a definitive agreement to sell its U.S. spinal implants business to Viscogliosi Brothers, LLC, a family-owned investment firm specializing in the neuro-musculoskeletal space, to create a newly formed company called VB Spine, LLC.
“We believe that the spinal implants business, with its comprehensive portfolio and strong sales channel, will thrive as an independent company," said Kevin A. Lobo, Chair and Chief Executive Officer, Stryker. "With dedicated resources and a focused strategy, the business will be well positioned to succeed as part of Viscogliosi Brothers.”
After closing, VB Spine will become a strategic partner to Stryker with exclusive access to Mako Spine and Copilot for use with VB Spine’s implants in spine procedures. The transaction will enhance the focus of both Stryker and VB Spine to meet the needs of customers and their patients and is expected to achieve faster growth and deliver greater value for all stakeholders.
“We have long admired Stryker for its comprehensive spine portfolio, incredible talent, and strong culture,” said Marc, John and Anthony Viscogliosi, Co-Founders of Viscogliosi Brothers, LLC. “We see a tremendous opportunity to provide the focus, surgeon-centric innovation, and commercial execution needed to grow the business and further impact patient lives and outcomes.”
The definitive agreement also includes a binding offer to acquire Stryker’s spinal implants business in France, subject to required consultations with employees and/or employee representatives. The sale of Stryker’s spinal implants business in other international markets is anticipated, pending satisfaction of legal and regulatory requirements, including any required consultations. The transaction is expected to close in the U.S. in the first half of 2025, subject to customary closing conditions. Stryker’s U.S. spinal implants business and VB Spine will continue to operate as separate entities and proceed with business as usual until the transaction closes.
In connection with the transaction, Barings, LLC is an investor and financial partner to Viscogliosi Brothers.
About Stryker
Stryker is a global leader in medical technologies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in MedSurg, Neurotechnology and Orthopaedics that help improve patient and healthcare outcomes. Alongside our customers around the world, we impact more than 150 million patients annually. More information is available at www.stryker.com.
About Viscogliosi Brothers
Viscogliosi Brothers is a family-owned New York City-based family office dedicated to driving growth and innovation in the neuro-musculoskeletal industry. Established in 1999, the firm focuses on identifying and building groundbreaking innovations in healthcare, aiming to address unmet clinical needs, enhance patient outcomes, and drive cost efficiency in the healthcare system. Since its inception 26 years ago, Viscogliosi Brothers has founded, financed, operated and grown 42 businesses with operations and distribution across more than 80 countries. These businesses have positively impacted millions of patients with cutting-edge innovations in healthcare. The firm has led the transformation of multiple businesses in the spine industry specifically including: Spine Solutions, Spine Next, Paradigm Spine, Simplify Medical, Centinel Spine, Companion Spine, Spine BioPharma and Woven Orthopedics Technologies, among others. For more information, visit https://www.vbllc.com/.
About Barings
Barings is a
*Assets under management as of December 31, 2024
Contacts
For investor inquiries please contact:
Jason Beach, Vice President, Finance and Investor Relations at 269-385-2600 or
jason.beach@stryker.com
John Nguyen, Senior Director, Investor Relations at 269-385-2600 or john.nguyen1@stryker.com
For media inquiries please contact:
Jenny Braga, Director, Communications and Public Relations at 269-385-2600 or jenny.braga@stryker.com
FAQ
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