Medtronic, Inc. (MDT) announced that it has entered into merger agreement to buy China Kanghui Holdings (KH) for $755 million. The transaction is expected to close in the next few months
Medtronic said that it will pay about $816 million in cash or $30.75 per American depository share. The total value of the transaction, net of Kanghui's cash, is expected to be about $755 million.
Medtronic expects the net impact from this transaction to be earnings neutral for fiscal years 2013 and 2014 as the company intends to offset any dilutive impact of the transaction.
"This agreement is directly aligned with our corporate strategies of globalization and economic value," said Omar Ishrak, chairman and CEO of Medtronic. "Kanghui represents a significant investment in China, accelerating Medtronic's overall globalization strategy with an established value segment distribution network and strong R&D and operational capabilities."
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