Stryker sells its U.S. spinal implants business to Viscogliosi Brothers, forming VB Spine for enhanced growth and focus.
Quiver AI Summary
Stryker has announced an agreement to sell its U.S. spinal implants business to Viscogliosi Brothers, LLC, creating a new entity called VB Spine, LLC. Stryker's CEO, Kevin A. Lobo, believes that the independent company will thrive with dedicated resources and a focused strategy. The agreement includes exclusive partnerships for spine procedures and aims to enhance growth and value for stakeholders. Viscogliosi Brothers founders see an opportunity to drive innovation and improve patient outcomes in the spine sector. The transaction is expected to close in the first half of 2025, pending regulatory approvals, and includes a potential acquisition of Stryker's spinal business in France. Until the deal closes, both companies will operate separately.
Potential Positives
- Completion of the transaction is expected to enhance Stryker's focus on its core business and improve overall value for stakeholders by creating a dedicated spinal implants entity, VB Spine.
- Stryker will benefit from a strategic partnership with VB Spine, gaining exclusive access to innovative technologies like Mako Spine and Copilot for spinal procedures.
- The sale includes a binding offer for Stryker's spinal implants business in France, indicating potential for future growth in international markets.
- The transaction is anticipated to close in the first half of 2025, positioning Stryker to streamline operations and focus resources on key areas of growth.
Potential Negatives
- Divestiture of the U.S. spinal implants business could create uncertainty regarding Stryker's overall market position and future growth potential in the spinal care sector.
- The potential sale of Stryker's spinal implants business in France and other international markets might indicate challenges in global operations or regulatory compliance issues.
- While the formation of VB Spine is positioned positively, it could signify that Stryker is intending to streamline operations at the risk of losing a direct influence over a significant segment of its business.
FAQ
What is the recent agreement between Stryker and Viscogliosi Brothers?
Stryker announced a definitive agreement to sell its U.S. spinal implants business to Viscogliosi Brothers to form VB Spine, LLC.
Who will manage the newly formed VB Spine, LLC?
VB Spine, LLC will be managed by Viscogliosi Brothers, a family-owned investment firm specializing in the neuro-musculoskeletal sector.
How will the transaction benefit Stryker and VB Spine?
The transaction is expected to enhance focus, increase growth, and deliver greater value for customers, patients, and stakeholders.
What future partnerships are anticipated after the sale?
After the sale, VB Spine will have exclusive access to Stryker's Mako Spine and Copilot for spine procedures, fostering strategic partnership.
When is the transaction expected to close?
The transaction is anticipated to close in the U.S. in the first half of 2025, subject to customary closing conditions.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$SYK Insider Trading Activity
$SYK insiders have traded $SYK stock on the open market 36 times in the past 6 months. Of those trades, 0 have been purchases and 36 have been sales.
Here’s a breakdown of recent trading of $SYK stock by insiders over the last 6 months:
- RONDA E STRYKER has made 0 purchases and 18 sales selling 420,000 shares for an estimated $145,952,138.
- KEVIN LOBO (Chair and CEO) has made 0 purchases and 3 sales selling 57,313 shares for an estimated $21,131,479.
- GLENN S BOEHNLEIN (VP, Chief Financial Officer) sold 20,000 shares for an estimated $6,660,000
- M KATHRYN FINK (VP, Chief HR Officer) has made 0 purchases and 12 sales selling 9,468 shares for an estimated $3,480,956.
- VIJU MENON (Group President) sold 600 shares for an estimated $213,000
- SPENCER S STILES (Group President) sold 514 shares for an estimated $201,056
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$SYK Hedge Fund Activity
We have seen 921 institutional investors add shares of $SYK stock to their portfolio, and 794 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- PARNASSUS INVESTMENTS, LLC added 2,111,493 shares (+inf%) to their portfolio in Q3 2024, for an estimated $762,797,961
- WELLINGTON MANAGEMENT GROUP LLP removed 1,141,140 shares (-10.2%) from their portfolio in Q3 2024, for an estimated $412,248,236
- WINSLOW CAPITAL MANAGEMENT, LLC added 1,060,231 shares (+inf%) to their portfolio in Q3 2024, for an estimated $383,019,051
- BLUESPRUCE INVESTMENTS, LP added 1,016,431 shares (+69051.0%) to their portfolio in Q3 2024, for an estimated $367,195,863
- INTERNATIONAL ASSETS INVESTMENT MANAGEMENT, LLC removed 851,186 shares (-99.7%) from their portfolio in Q4 2024, for an estimated $306,469,519
- MACKENZIE FINANCIAL CORP added 846,976 shares (+241.6%) to their portfolio in Q3 2024, for an estimated $305,978,549
- BLACKROCK, INC. added 820,758 shares (+3.1%) to their portfolio in Q3 2024, for an estimated $296,507,035
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Portage, Michigan, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Stryker (NYSE:SYK), a global leader in medical technologies, announced today a definitive agreement to sell its U.S. spinal implants business to Viscogliosi Brothers, LLC, a family-owned investment firm specializing in the neuro-musculoskeletal space, to create a newly formed company called VB Spine, LLC.
“We believe that the spinal implants business, with its comprehensive portfolio and strong sales channel, will thrive as an independent company," said Kevin A. Lobo, Chair and Chief Executive Officer, Stryker. "With dedicated resources and a focused strategy, the business will be well positioned to succeed as part of Viscogliosi Brothers.”
After closing, VB Spine will become a strategic partner to Stryker with exclusive access to Mako Spine and Copilot for use with VB Spine’s implants in spine procedures. The transaction will enhance the focus of both Stryker and VB Spine to meet the needs of customers and their patients and is expected to achieve faster growth and deliver greater value for all stakeholders.
“We have long admired Stryker for its comprehensive spine portfolio, incredible talent, and strong culture,” said Marc, John and Anthony Viscogliosi, Co-Founders of Viscogliosi Brothers, LLC. “We see a tremendous opportunity to provide the focus, surgeon-centric innovation, and commercial execution needed to grow the business and further impact patient lives and outcomes.”
The definitive agreement also includes a binding offer to acquire Stryker’s spinal implants business in France, subject to required consultations with employees and/or employee representatives. The sale of Stryker’s spinal implants business in other international markets is anticipated, pending satisfaction of legal and regulatory requirements, including any required consultations. The transaction is expected to close in the U.S. in the first half of 2025, subject to customary closing conditions. Stryker’s U.S. spinal implants business and VB Spine will continue to operate as separate entities and proceed with business as usual until the transaction closes.
In connection with the transaction, Barings, LLC is an investor and financial partner to Viscogliosi Brothers.
About Stryker
Stryker is a global leader in medical technologies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in MedSurg, Neurotechnology and Orthopaedics that help improve patient and healthcare outcomes. Alongside our customers around the world, we impact more than 150 million patients annually. More information is available at www.stryker.com .
About Viscogliosi Brothers
Viscogliosi Brothers is a family-owned New York City-based family office dedicated to driving growth and innovation in the neuro-musculoskeletal industry. Established in 1999, the firm focuses on identifying and building groundbreaking innovations in healthcare, aiming to address unmet clinical needs, enhance patient outcomes, and drive cost efficiency in the healthcare system. Since its inception 26 years ago, Viscogliosi Brothers has founded, financed, operated and grown 42 businesses with operations and distribution across more than 80 countries. These businesses have positively impacted millions of patients with cutting-edge innovations in healthcare. The firm has led the transformation of multiple businesses in the spine industry specifically including: Spine Solutions, Spine Next, Paradigm Spine, Simplify Medical, Centinel Spine, Companion Spine, Spine BioPharma and Woven Orthopedics Technologies, among others. For more information, visit https://www.vbllc.com/ .
About Barings
Barings is a $421+ billion* global asset management firm that partners with institutional, insurance, and intermediary clients, and supports leading businesses with flexible financing solutions. The firm, a subsidiary of MassMutual, seeks to deliver excess returns by leveraging its global scale and capabilities across public and private markets in fixed income, real assets and capital solutions.
*Assets under management as of December 31, 2024
Contacts
For investor inquiries please contact:
Jason Beach, Vice President, Finance and Investor Relations at 269-385-2600 or
[email protected]
John Nguyen, Senior Director, Investor Relations at 269-385-2600 or [email protected]
For media inquiries please contact:
Jenny Braga, Director, Communications and Public Relations at 269-385-2600 or
[email protected]