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Written by the Mackenzie Growth Team
Ahead of the infamous JP Morgan Healthcare conference, Stryker announced its intention to acquire Inari Medical for $80/shr. It was an exciting week for the Mackenzie US Small-Mid Cap Growth Fund which first bought shares of Inari Medical in September 2024. Over the subsequent 4 months, the fund grew its ownership of Inari Medical to become a top 20 shareholder in the firm.
We are pleased with the significant premium offered by Stryker’s $80 cash bid given that shares were trading in the low $40s for many sessions in September and October of 2024. Given the superior growth profile of Inari Medical (20% plus top line growth), we think this deal was a great opportunity for Stryker to buy a quality asset at a reasonable revenue multiple (6.5x). Given the proposed leadership changes at the FTC under the new administration, we would not be surprised to see the quantity of M&A deals pick-up in the small/mid cap space. Inari Medical is a leader in mechanical thrombectomy for the treatment of various arterial diseases.
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