Plymouth-based Entellus Medical Selling to Stryker Corp. for $664M
Plymouth-based Entellus Medical Inc., a maker of minimally invasive devices used to treat nasal airway obstructions, announced Thursday it had agreed to sell to Stryker Corporation for approximately $662 million.
Stryker, a Fortune 500 medical technologies firm based out of Kalamazoo, Michigan, offered Entellus $24 per share in its acquisition—amounting to a roughly 50 percent premium over the local medtech company’s closing price on Wednesday. The Entellus board of directors unanimously approved the deal.
However, the purchase agreement is still subject to approval by Entellus’ shareholders, as well as regulatory approval.
“The combination of Stryker’s established commitment to making healthcare better and Entellus’ innovative products within the ENT [ear, nose and throat] segment will continue to provide our customers the tools they need for cost effective solutions,” said Entellus CEO Robert White in a statement. “I look forward to the additional progress we make together.”
Founded in 2006, Entellus is best known for its flagship product, the XprESS ENT balloon dilation systems, which are used to treat the frontal, maxillary and sphenoid sinuses, as well as the Eustachian tubes of a patient’s nasal cavity.
Additionally, Entellus offers the Latera Absorbable Nasal Implant, essentially a forked toothpick device that rests along the nasal wall to support the upper and lower cartilage in the nose. The Latera device is new to Entellus, arriving via acquisition earlier this summer.
In a separate statement, Stryker said the transaction would likely be dilutive to its 2018 adjusted net earnings per diluted share by 4 cents, and then accretive thereafter.
News of the deal sent Entellus shares up 50 percent to roughly $24 a piece on Thursday—the same price Stryker would pay for the company. Stryker stock, however, dropped about half a point as of mid-day Thursday to about $151 a share.