Is This the Best Health Care Acquisition of 2013?

Cardiovascular device maker Covidien (UNKNOWN: COV.DL  ) has had an up-and-down year in 2013. Despite a gain of more than 26% from its stock, this household medical device name has seen sales growth slump to sluggish figures for the year as the device industry has fought against tough competition and pricing pressures in advanced economies like the U.S. and Europe.

What's the next step for big medical device makers like Covidien? Innovation -- and Covidien isn't thinking small. The company announced earlier this week that it will acquire innovative imaging device maker Given Imaging (UNKNOWN: GIVN.DL  ) for $30 per share. That's a steep premium to be paid, but is it worth it to inject a dose of growth into Covidien's outlook?

In the video below, Fool contributor Dan Carroll takes you through what you need to know from Covidien's acquisition of Given -- and how this under-the-radar purchase could be a huge boon for the company and investors heading into the long-term future.

How your portfolio can make the most of 2014
Covidien has made strong gains in 2013, part of the market's huge run across 2013 that has left some investors on the sidelines burned. However, opportunistic investors can still find huge winners. The Motley Fool's chief investment officer has just hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2014." To find out which stock it is and read our in-depth report, simply click here. It's free!

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