Stryker announced plans on Monday to buy joint replacement company Serf Sas.
The Décines-Charpieu, France-based company makes hip and knee implants, screws and plates. Serf Sas invented the dual mobility cup, which uses a specialized liner for hip implants to reduce the risk of dislocation.
Stryker said the acquisition would allow it to serve a wider range of patients. It expects the acquisition will complement its current presence in France and across Europe, as well as its joint replacement portfolio. Last year, Stryker reported $2 billion in sales from knee replacements and $1.41 billion from hip replacements.
The company said at an investor day last month it would prioritize M&A as its top use of capital going forward, as it prepared to finish paying down the term loan it used for its nearly $3 billion acquisition of Vocera Communications.
Stryker and Serf Sas did not disclose the terms of their agreement. According to French law, they must complete a works council information-consultation process before executing a merger.
The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions including regulatory approvals.