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)