The analyst called out Stryker and Medtronic as two potential buyers of Smith & Nephew. He analyzed both hypothetical deals, assuming a purchase price at a 35% premium to Monday's close, which would be in line with recent medtech acquisitions. For Stryker, Matson said an acquisition of Smith & Nephew would increase Stryker's scale, market share, international presence, and would be significantly accretive to the company's earnings. He estimated that an acquisition of Smith & Nephew would make Stryker the market leader in the reconstructive hips and knees segment, and in sports medicine. It would also significantly bolster the company's number two position in the trauma space, and bump the company to the number two spot in advanced wound care. If Medtronic were to acquire Smith & Nephew, Matson said it would increase the company's scale, product breadth, and would be mostly accretive to its earnings. More specifically, such a deal would broaden Medtronic's orthopedics offering beyond spine. He estimated that the acquisition if it happened, would place Medtronic fourth in the reconstructive device market, second in sports medicine, fourth in trauma, and second in advanced wound care. Because Medtronic has minimal overlap with Smith & Nephew, Matson said the cost synergies would probably be smaller than it would be if Stryker was the buyer.
Medtronic does not want SNN. They aren't big enough. If you are lucky they wont buy SNN, because you should expect a 30% shave in personnel in year 1 if they do. They love layoffs! Also expect prices to go down and commissions with it. They wouldn't come in and play the same old game as a #4 player.
dont hold your breathe, no ones buying smith and nephew. The tax benefit isn't there with the new tax plan and no one is buying us for our current dumpy technology.
This deal has been rumored for 15 years. Stop the mindless speculating. SYK just paid 800m for Novadaq. SYK could easily buy SNN, but not until the SNN CEO is gone. Stryker would love to merge the two, and it makes more sense than above stated in the post. Tons of synergy....still though, who the hell knows.
