Smith & Nephew (LON:SN) has inked a deal to buy NASDAQ-listed Osiris Therapeutics for $660 million in cash, the London-listed artificial hips and knees maker has said. The news comes after the FTSE 100 group updated investors on its full-year performance last month, posting a rise in revenue, while revealing that restructuring costs had pressured its profit margin last year.
Smith & Nephew’s share price has been steady in London in today’s session, having gained 0.34 percent to 1,467.00p as of 14:33 GMT. The stock is marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.21 percent higher at 7,145.55 points. The group’s shares have added more than 10 percent to their value over the past year, as compared with about a one-percent fall in the Footsie.
S&N buys Osiris Therapeutics
Smith & Nephew announced in a statement today that it had agreed to acquire Maryland-based Osiris Therapeutics for $19.00 per share in cash, representing a total equity value of approximately $660 million. The NASDAQ-listed group makes regenerative medicine products, including skin, bone graft and articular cartilage substitutes.
“Greater presence in the fast growing regenerative medicine market enhances our portfolio and will help immediately accelerate our wound management business as well as provide longer term innovations in additional channels and indications,” S&N’s chief executive officer Namal Nawana commented in the statement.
Under the terms of the deal, the FTSE 100 group will begin a two-step tender offer to purchase all of the outstanding shares of Osiris common stock. The companies expect to complete the transaction in the second quarter of the year.
Analysts on FTSE 100 group
JPMorgan Chase & Co, which is ‘neutral’ on S&N, boosted its price target on the shares from 1,477p to 1,516p yesterday, while Goldman Sachs, also ‘neutral’ on the FTSE 100 group, hiked its valuation on the stock from 1,400p to 1,440p. According to MarketBeat, the London-listed company currently has a consensus ‘hold’ rating and an average price target of 1,479.36p.