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London-based Smith & Nephew Plc (NYSE: SNN) agreed to buy ArthroCare Corp. (Nasdaq: ARTC), of Austin, Texas, for $1.7 billion in cash to add products for minimally invasive surgery used in sports medicine.

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Smith & Nephew to Buy ArthroCare for $1.7 Billion in Cash

London-based Smith & Nephew Plc (NYSE: SNN) agreed to buy ArthroCare Corp. (Nasdaq: ARTC), of Austin, Texas, for $1.7 billion in cash to add products for minimally invasive surgery used in sports medicine.

Smith & Nephew to Buy ArthroCare for $1.7 Billion in Cash (Bloomberg)

London-based Smith & Nephew Plc (NYSE: SNN) agreed to buy ArthroCare Corp. (Nasdaq: ARTC), of Austin, Texas, for $1.7 billion in cash to add products for minimally invasive surgery used in sports medicine. ArthroCare holders will receive $48.25 a share in cash, Smith & Nephew announced. The price is a modest premium of 6.3 percent above ArthroCare‚??s closing price level on Jan. 31. ArthroCare makes products used in arthroscopic surgery on shoulders and knees that will enhance Smith & Nephew‚??s business, the U.K. company‚??s management said. Cost reductions and additional sales will boost Smith & Nephew‚??s annual profit by about $85 million in the third full year after the purchase is complete, said the management of Smith & Nephew, makes sports-medicine surgical equipment, as well as artificial hips and knees. The deal shows American ingenuity is valued but Smith & Nephew did not need to pay a high premium to entice a seemingly willing seller.

Written By

Paul Dykewicz is the editorial director of the Financial Publications Group at Eagle Publishing Inc., www.eaglepub.com, of Washington, D.C. Eagle publishes five free, e-letters, 10 weekly trading services and five monthly investment newsletters, Forecasts & Strategies, Successful Investing, Cash Machine, Growth & Dividend Report and The Alpha Investor Letter. He also is the editor of Eagle Daily Investor and the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain."

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Smith & Nephew to Buy ArthroCare for $1.7 Billion in Cash

Smith & Nephew to Buy ArthroCare for $1.7 Billion in Cash (Bloomberg)

London-based Smith & Nephew Plc (NYSE: SNN) agreed to buy ArthroCare Corp. (Nasdaq: ARTC), of Austin, Texas, for $1.7 billion in cash to add products for minimally invasive surgery used in sports medicine. ArthroCare holders will receive $48.25 a share in cash, Smith & Nephew announced. The price is a modest premium of 6.3 percent above ArthroCare’s closing price level on Jan. 31. ArthroCare makes products used in arthroscopic surgery on shoulders and knees that will enhance Smith & Nephew’s business, the U.K. company’s management said. Cost reductions and additional sales will boost Smith & Nephew’s annual profit by about $85 million in the third full year after the purchase is complete, said the management of Smith & Nephew, makes sports-medicine surgical equipment, as well as artificial hips and knees. The deal shows American ingenuity is valued but Smith & Nephew did not need to pay a high premium to entice a seemingly willing seller.

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