MINNEAPOLIS (AP) — Medtronic Inc. will buy China Kanghui Holdings for $816 million, helping it expand in one of the world's fastest growing medical device markets.
Medtronic, the world's largest maker of medical devices, is paying $30.75 for each share of Kanghui Holdings, a 22 percent premium to the stock's closing price Thursday. Net of Kangui's cash, the transaction is valued at $755 million.
China Kanghui Holdings makes orthopedics devices, specializing in trauma, spine and joint reconstruction. The company earned net income of $18.9 million in 2011 as revenue rose 35 percent to 327 million yuan ($51.4 million). Medtronic said late Thursday the company has a large product portfolio, strong research and development, and manufacturing operations, and a large distribution network.
U.S.-listed shares of China Kanghui Holdings surpassed their 52-week high in morning trading, jumping $5.39, or 21.5 percent, to $30.50. The American depository shares have traded between $12.92 and $27.47 in the last 12 months.
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