News of a US acquisition will help boost growth rates at Smith & Nephew (SN.) and should reinvigorate sentiment. The company will buy Texas-based medical devices company ArthroCare (US: ARTC) in an attempt to boost its sports medicine business and increase its exposure to US markets.
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Smith & Nephew has agreed to pay $1.7bn (£1bn) for the group – or $48 per AthroCare share – which is a 20 per cent premium to the share price before the announcement. The deal is forecast to add $85m to annual trading profit in three years, with approximately $100m of integration costs expected in that time.
