Hendren Group are advising clients as to Stryker Corporation, the world’s second largest manufacturer of Orthopedic devices following announcements made that a buyout of Mako Surgical Corp has been agreed at the premium price of $1.65 billion.
Hendren Group is a financial management and investment company dealing with investment methods and strategies. Based in Tokyo boasting a large base of private clients and a well skilled team of advisors, they conduct research and then subsequently develop short and long-term systematic approaches to achieving optimum returns on investments for themselves, their associates and for their current client base.
In a recent deal set to total $1.65 billion, orthopedic implant manufacturer Stryker Corp has agreed to buy the nine year old Mako Surgical Corp. The deal will see the Michigan based company obtain advanced technology used in robotic surgery practices. Mako has been a pioneer developer of equipment such as its Rio robotic arm, which allows orthopedic surgeons to cut with precise calculation bone to allow the fitting of implants.
Hendren Group Senior Vice President of Mergers and Acquisitions, David Holmes opined, “The takeover will prove to be a sound and substantiated buyout when viewed from both the angle of cost savings and expanded sales. Stryker’s figures tend to show that though they will be carrying some increased costs for the first twelve months of the amalgamation, by month 36, they will have been adjusted down as increased sales come online and resultant profits increase to match.”
With its robotic actuators and software already being used in procedures designed to utilize its own line of implanted aids for knee and hip replacement, Mako’s technology and patents are of great value to a manufacturer like Stryker who will be able to use the smaller company’s developments in the implantation of their own line of joint replacements. Many analysts agree the move will ultimately be a greatly beneficial one for Stryker.
Hendren Group believes that overall the deal is expected to see Stryker’s share earnings diluted by up to 12 cents a share within the initial 12 months, slightly compounded by Mako’s issue of an additional 3.95 million shares as part of the agreed transaction. Stryker’s shares fell 2.7% to $68.89, while Mako’s rose in value 82% to $29.49 on news of the finalized agreement. ROI for the year to date for both companies stand at 25.78% and 65.52% for Stryker and Mako respectively.
Hendren Group Senior Vice President David Holmes concluded by saying, “You can see the value Stryker has placed on the benefits offered by merging operations with Mako, by the premium they offered to achieve this deal quickly. Most analyst that have been observing this transaction as it developed believe that Stryker has made the right decision, leaving shareholders within Mako in a profitable position. With Stryker’s prices being under valued in line with this expenditure, now would seem a good time to consider taking on these shares as a 36-month investment plan. We will continue to monitor closely the progress they are making, advising investors as to the best strategy to fulfill the maximum potential in a diverse portfolio held at Hendren Group.”
Hendren Group is set to continue to advise clients to acquire shares within the global markets adding to successful diversified portfolios.