Medtronic has announced it will acquire China Kanghui Holdings for $816 million, according to a news release.
Kanghui Holdings is a maker of orthopedic devices.
"China is one of the fastest growing medical device markets with significant scale opportunities, and now Medtronic will establish a bigger and more direct local presence," said Chris O’Connell, executive vice president and president of Medtronic's Restorative Therapies Group, including the neuromodulation, spine, surgical technologies and diabetes businesses, in the release. "Kanghui brings Medtronic a broad product portfolio, a strong local R&D and manufacturing operation, a vast China distribution network and an exceptional management team. This move will provide Medtronic sustainable advantages in the fast-growing Chinese orthopedic segment, as well as a foothold in the emerging global value segment in orthopedics."
The transaction is expected to close in the next few months. The total value of the transaction, net of Kanghui's cash, is expected to be approximately $755 million.
Medtronic had its world headquarters in Minneapolis.
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