Medtronic to buy Chinese medical device maker for $755 million

Thu Sep 27, 2012 10:19pm EDT

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(Reuters) - Medtronic Inc (MDT.N), the world's largest stand-alone maker of medical devices, said that it will buy orthopedic device maker China Kanghui Holdings KH.N for $755 million to enter the Chinese medical device market.

Medtronic will pay $816 million in cash or $30.75 per American Depository Share, it said in a statement.

The deal represents a 22.5 percent premium to Kanghui's closing price on Thursday on the New York Stock Exchange.

"Kanghui represents a significant investment in China, accelerating Medtronic's overall globalization strategy," Medtronic Chief Executive Omar Ishrak said in a statement.

Medtronic expects the deal to be earnings neutral for fiscal years 2013 and 2014.

Shares of Medtronic closed at $43.48, while shares of Kanghui closed at $25.11, on the New York Stock Exchange on Thursday.

(Reporting by Avik Das in Bangalore; Editing by Jacqueline Wong)


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