Medtronic Inc. has agreed to pay $816 million for orthopedic implant maker China Kanghui Holdings Inc. as the Fridley maker of heart-rhythm devices expands its fractures and spinal treatment business in emerging markets.

The pacemaker and spinal implant supplier will pay $30.75 per American depositary receipt in a transaction worth $755 million after accounting for Kanghui's cash, Medtronic said in a statement late Thursday. The price is 22 percent more than the most recent closing level for the ADRs.

"Kanghui brings Medtronic a broad product portfolio, a strong local R&D and manufacturing operation, a vast China distribution network and an exceptional management team," Chris O'Connell, president of Medtronic's restorative therapies group, said in the statement. The deal provides "advantages in the fast-growing Chinese orthopedic segment, as well as a foothold in the emerging global value segment in orthopedics," he said.

Medtronic CEO Omar Ishrak added, "This agreement is directly aligned with our corporate strategies of globalization and economic value."

The deal is expected to close in the next few months and will help Medtronic widen its offerings in orthopedics and neurosurgery, according to the statement. Kanghui, based in Changzhou, China, was founded in 1997 and raised $68.4 million in an initial public offering two years ago.

Kanghui ADRs rose 2.5 percent to $25.11 Thursday, boosting their climb this year to 70 percent.