Blackstone Group acquired Chinese-based Xinrong Best Medical Instrument for $100 million, according to a HealthPoint Capital report.
Xinrong develops orthopedic implants for trauma, spine and joint replacement applications. The company is targeting tier-2 and tier-3 Chinese cities. The company's strategy is to become more competitive on implant pricing than other, multinational device companies in the Chinese market place.
The Chinese healthcare market is one of the fastest-growing marketplaces in the world and orthopedics-focused device companies are looking for a presence. Several device companies have acquired local Chinese companies for a "home court advantage," while others have partnerships there.
For example, in 2012 Medtronic paid $816 million for China Kanghui Holdings, an orthopedic implant maker. Last year Stryker purchased Trauson Holdings, a spine device maker, for $764 million in cash. Life Spine, a smaller spine-focused device company, partnered with China Pioneer Pharma Holdings earlier this year.
Research in China reported the China orthopedic industry grew 19.2 percent from 2009 to 2013 due to the aging population growth and rising medical expense reimbursement. The dominant orthopedic instrument segments are trauma, spine and joint products, and the entire industry is expected to grow in the future.