Smith and Nephew completes takeover of ArthroCare

Smith and Nephew has announced that it has completed the takeover of ArthroCare, a deal that will increase its capabilities in the field of sports medicine.

The $1.5 billion (895.19 million pounds) deal will see Smith and Nephew welcome ArthroCare's employees to its organisation, with the two companies combined global footprint to offer new growth possibilities.

In the field of resection, the combination of ArthroCare's radio frequency technology and Smith and Nephew's strong mechanical blade portfolio will give customers greater choice, while the acquired company's shoulder anchor innovation will complement its new parent's strength in knee repair.

The takeover is also expected to deliver substantial cost and revenue synergies, adding up to approximately $85 million to annual trading profit in the third full year.

Olivier Bohuon, chief executive officer of Smith and Nephew, said: "The acquisition of ArthroCare is a compelling transaction that accelerates our strategy to rebalance Smith and Nephew towards our higher growth segments."

During the first quarter of the year, Smith and Nephew generated a revenue total of $1.07 billion, up by one percent year on year.