Stryker announced a deal to sell its U.S. spine implants business to investment firm Viscogliosi Brothers, which will call the new company VB Spine.
Also after the market closed on Tuesday, the world’s second-largest orthopedic device company announced the retirement of its chief financial officer, reported fourth-quarter and full-year operating results, and offered its outlook for the year ahead.
The next day, SYK shares were down slightly to $393.82 apiece. (The S&P 500 was also down slightly.)
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Expected to close in the first half of 2025, the deal also includes a binding offer for the spine implants business in France, “subject to required consultations with employees and/or employee representatives.”
Portage, Michigan–based Stryker said it also plans to sell its spine implants businesses in other international markets.
“We believe that the spinal implants business, with its comprehensive portfolio and strong sales channel, will thrive as an independent company,” Stryker CEO and Chair Kevin Lobo said in a news release. “With dedicated resources and a focused strategy, the business will be well positioned to succeed as part of Viscogliosi Brothers.”
Stryker’s U.S. spinal implants business and VB Spine will continue to operate as separate entities until the transaction closes, at which point VB Spine will have exclusive access to Stryker’s Mako Spine and Copilot for use with VB Spine’s implants in spine procedures.
Financial terms were not disclosed. Stryker said the deal “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’ve been looking at this market for a long time and we’ve been trying to make improvements in our spine business,” Lobo said during a conference call for investors. “We are excited about the enabling tech with Copilot and Mako Spine, but fundamentally just have better opportunities to invest our funds in other businesses.”
