China Kanghui, a developer, manufacturer and marketer of orthopedic implants in China, has acquired a majority stake (60%) in Beijing Wei Rui Li Medical Device, a provider of approved hip and knee systems in China.
Pursuant to the share purchase agreement, China Kanghui has the option to acquire additional equity interest in Wei Rui Li at a pre-determined price subject to the achievement of certain milestones.
Kanghui CEO Libo Yang said with the acquisition, they expect to launch their first joint implant product into the Chinese market by early 2012, which offers Kanghui another driver for future growth.
"By combining our manufacturing, sales and distribution infrastructure with Wei Rui Li’s proven product development capability, we believe that Kanghui and Wei Rui Li can make significant inroads in the reconstruction market in China," Yang said.
The transaction is expected to close by 31 March 2011, subject to all conditions set out in the share purchase agreement being satisfied.