JRI Orthopaedics, a U.K.-based manufacturer of hip and shoulder reconstruction devices, was acquired by China's AK Medical for £16.7MM (~US $23.7MM) in cash.
AK Medical is the largest orthopaedic implant manufacturer in China, and was the first to commercialize 3D printing technology for joint and spine devices in the region. AK posts annual revenue of £42.0MM (~$59.5MM), and reported +30% growth for 2017 vs. 2016.
JRI, founded in 1970 by orthopaedic surgeon Ronald Furlong, was in 1985 the first company to produce a hydroxyapatite-coated hip. Its FURLONG H-AC Total Hip received FDA 510(k) clearance in 2004. Per public filings, JRI Orthopaedics posted FY2017 revenue of £14.2MM (~$17.7MM per historical exchange rate, fiscal year ending 3/31/17).
The two companies were already partnered since 2014 in an agreement for JRI to manufacture hips designed by AK for sale in China. JRI also has approval to sell its own hip devices in China.
JRI will remain a standalone operation, with no change to management or its 100+ workforce, and a global research, development and training center will be created in the U.K.
The brands of both companies will remain intact. JRI's portfolio includes cemented, uncemented and revision hip implants, total shoulders and shoulder surface replacement, custom hip and shoulder devices and a variety of supporting orthobiologics and instrumentation. AK produces hip, knee and spinal devices.