Analysts: Stryker, Boston Scientific tie-up could create “ higher growth Medtronic ”

Analysts are eagerly digging into the news that Stryker (NYSE:SYK) put in a takeover bid with Boston Scientific (NYSE:BSX), though many were surprised by the news and are unsure of the obvious strategic value of the acquisition. News of the deal, which both companies have officially responded to with statemens of “no comment,” emerged yesterday at the Wall Street Journal. The merger could create a “higher growth Medtronic,” according to Evercore’s Vijay Kumar, adding approximately 2% to Stryker’s expected 2019 earnings per share and up to 6% by next year, SeekingAlpha reported. SunTrust’s Bruce Nudell thinks the deal makes strategic sense, as it would combine Kalamazoo, Mich.-based Stryker’s deep hospital infrastructure with Marlborough, Mass.-based Boston Scientific’s interventional implantable franchises, according to SeekingAlpha. Other analysts are curious as to whether another suitor could emerge, though the number of companies that could afford such an acquisition would limit it to major players like Johnson & Johnson (NYSE:JNJ). Improvements in purchasing power, enhanced market position and synergies across the neuromodulation and endoscopy businesses, and more call points in hospitals topped the list of strategic strengths of the deal for Stryker, according to a Leerink Partner letter to investors. Boston Scientific is one of the few players in the medtech field with top-line growth near to Stryker’s high single-digit range,...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Mergers & Acquisitions Wall Street Beat Boston Scientific johnsonandjohnson Medtronic Stryker Source Type: news