Stryker announces definitive agreement to acquire Sage Products

Stryker recently announced a definitive agreement to acquire Sage Products LLC from Madison Dearborn Partners in an all cash transaction for $2.775 billion, according to a company press release.

The transaction includes an anticipated future tax benefit which, according to the release, is expected to exceed $500 million and to positively impact cash flows during an approximate 15-year span.

Sage is a developer of innovative products and proprietary solutions designed to help improve outcomes for patients and clinicians, while maximizing efficiency and profitability for health care facilities. Products from the company are targeted at reducing “never events,” primarily in the intensive care unit and medical surgery hospital unit setting. Sales for Sage in fiscal year 2015 totaled $430 million, according to the release.

“The company’s established leadership team and innovative products that help prevent hospital acquired conditions have driven consistent double-digit sales growth,” Keven A. Lobo, chairman and chief executive officer of Stryker, said in the release. “This acquisition aligns with Stryker’s focus on offering products and services that support a mindset of prevention, specifically in the area of “never events,” such as hospital-acquired infections. Today, through our medical division, Stryker offers products that are complementary to those produced by Sage. Sage has a 45-year history of focus on patients and caregivers that is evidence in their culture and fits well with our medical division. This business will also provide a consistent disposable revenue stream that will complement our capital equipment offerings. We look forward to welcoming the Sage team to Stryker.” – by Casey Tingle

Reference:

http://phx.corporate-ir.net/phoenix.zhtml?c=118965&p=irol-newsArticle&ID=2133932