Stryker to pay $1.3B for Physio-Control
Stryker (NYSE:SYK) said today that it agreed to pay $1.28 billion to Bain Capital for automated external defibrillator maker Physio-Control.
Medtronic (NYSE:MDT) sold Physio-Control to Bain for $478 million in January 2012.
The all-cash deal, slated to close at the beginning of the 2nd quarter, is expected to add slightly to Kalamazoo, Mich.-based Stryker’s adjusted earnings per share this year. The company boosted its earnings outlook for the year to reflect contributions from Physio-Control and recent buy Sage Products, saying it now expects to post adjusted EPS of $5.57 to $5.77, up from guidance for $$5.55 to $5.75. The acquisitions are forecast to contribute 15¢ to 18¢ to adjusted EPS next year, Stryker said.
Redmond, Wash.-based Physio-Control, which put up sales of $503 million during fiscal 2015, is due to be integrated into Stryker’s emergency medical systems portfolio, the company said.
“Physio-Control has achieved global leadership positions with a strong brand and customer-centered solutions that can predict or intervene in life-threatening emergencies,” chairman & CEO Kevin Lobo said in prepared remarks. “Physio-Control’s focused strategy and their culture will fit well within the EMS business of our medical division, further leveraging our existing call pattern. We look forward to welcoming the Physio-Control team to Stryker.”
“Joining Stryker is an exciting next step in the evolution of Physio-Control ...
Source: Mass Device - Category: Medical Equipment Authors: Brad Perriello Tags: Cardiovascular Mergers & Acquisitions Resuscitation Wall Street Beat Bain Capital Medtronic Physio-Control Inc. Stryker Source Type: news
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