US firm to buy joint replacement maker

　　By Liang Fei

　　Zimmer, a global leader in joint replacement, signed an agreement to acquire the Beijing-based Montagne Medical Device Company Sunday, one China's top producers in the industry.

　　Zimmer is making the acquisition to capitalize on the opportunities in the rapidly growing orthopedic market in China, which the company expects to double in size by 2013 from its current $1 billion.

　　Huang Hongliang, president of Zimmer's Asia Pacific region, said that the cooperation with Montagne could help Zimmer to expand its market presence in China.

　　"China now is facing the problem of an aging population. With Chinese people's increasing attention to health and more disposable income, I see a big market in artificial joint replacement," said Huang.

　　After the acquisition, the two brands would run separately. According to Huang, Zimmer will send a management team to Montagne to join the daily operation of the company.

　　The acquisition still needs the approval of the government, but Huang said that he did not see much obstacles coming in that sense. The acquisition is expected to close in late 2010 or early 2011.

　　Financial details were not revealed at the press conference, but according an earlier report in the China Business News, the purchase involves $350 million.

　　Tang Xueli, executive director of Montagne, said that although his company is growing rapidly in the domestic market, cooperation with the Fortune-500-company could bring more value to Montagne's brand development.