Synthes-Stratec and Mathys join forces

The two firms plan to join forces by the end of the year. Synthes-Stratec

The Swiss medical implant manufacturer, Synthes-Stratec, has announced it is buying rival, Mathys Medical, for SFr1.5 billion ($1.09 billion).

The two concerns said the deal would create a global osteosynthesis medical device company. Osteosynthesis is the surgical treatment of bones.

Synthes-Stratec said in a statement on Wednesday from its headquarters in Oberdorf in canton Basel Country that it would pay SFr1 billion in cash and issue 510,725 shares under the terms of the accord.

At the same time, Synthes-Stratec reported a net loss of $75.6 million for the first half of 2003. This included a $215 million write-off of research and development related to the company’s acquisition of Spine Solutions.

The news sent the price of Synthes-Stratec shares surging by almost nine per cent to SFr1,106 at noon trading in Zurich before closing at SFr1,099.

Mathys, which is a family-owned company based in Bettlach in canton Solothurn, makes products to treat the skeleton and had revenues of SFr383 million last year in its osteosynthesis business.

The statement said that both companies had developed close alliances with leading surgeons, and university and hospital staff worldwide.

It added that the combination of Mathys and Synthes-Stratec would allow for more efficient worldwide product development and manufacturing activities.

The deal, which is subject to regulatory and shareholder approval, is expected to be completed before the end of the year.

swissinfo with agencies