Stryker has agreed to sell its US spinal implants business to Viscogliosi Brothers, a New York City-based investment company focused on driving growth and innovation in the neuro-musculoskeletal sector.

The sale is expected to lead to the formation of a new company called VB Spine.

Financial details of the deal were not disclosed.

The agreement also includes a binding offer to acquire Stryker’s spinal implants business in France, which is contingent on employee consultations.

Stryker disclosed that it expects to sell its spinal implants business in other international markets as well, which will be subject to legal and regulatory approvals.

The transaction in the US is anticipated to close in the first half of this year, subject to customary closing conditions.

Until then, Stryker’s US spinal implants business and VB Spine will operate as separate entities and continue business as usual.

Stryker chair and CEO Kevin Lobo said: “We believe that the spinal implants business, with its comprehensive portfolio and strong sales channel, will thrive as an independent company.

“With dedicated resources and a focused strategy, the business will be well positioned to succeed as part of Viscogliosi Brothers.”

After the deal closes, VB Spine will partner with Stryker, gaining access to Mako Spine and Copilot for use with the former’s implants in spinal procedures.

The deal is expected to drive faster growth, enhance focus on customer needs, and deliver more value to all stakeholders.

Viscogliosi Brothers co-founders Marc, John, and Anthony Viscogliosi said: “We have long admired Stryker for its comprehensive spine portfolio, incredible talent, and strong culture.

“We see a tremendous opportunity to provide the focus, surgeon-centric innovation, and commercial execution needed to grow the business and further impact patient lives and outcomes.”

Barings is serving as an investor and financial partner to Viscogliosi Brothers in connection with the transaction.

Separately, Stryker has reported $6.4bn in sales for Q4 2024. The company’s net earnings for the reported quarter were $546m, down by 52.2% from Q4 2023.

Earlier this month, Stryker announced a $4.9bn deal to acquire Inari Medical, with the transaction expected to close by the end of Q1 2025.