Stryker has long been rumored “on the prowl” for mid-sized medical device companies to acquire, such as MAKO Surgical and Small Bone Innovations. The company has also been linked to talks with Smith & Nephew for a potential acquisition. But the company made a different move today to acquire the London, Ontario, Canada-based CHG.
Here are five things to know about the transaction:
1. Stryker made an all-cash transaction for CHG Hospital Beds, which serves markets in Canada, the United States and the United Kingdom.
2. The transaction is expected to be neutral on Stryker’s 2015 earnings per share excluding acquisition, integration-related and intangible amortization charges and accretive thereafter.
3. CHG was founded in 2003 and manufactures and markets a series of low-height hospital beds and related accessories, designed for patients’ feet to reach the floor when sitting at the edge of the bed.
4. The low-height design could reduce fall risk when entering and exiting hospital beds.
5. CHG recently launched the Spirit One bed, an expandable low-height bariatric bed in the acute care setting.
“The acquisition of CHG aligns with Stryker’s commitment to offering products that enhance the quality of care for both patients and healthcare professionals; in this case, aiding in the prevention of patient-related injuries resulting from a fall from a hospital bed,” said Stryker Group President, MedSurg and Neurotechnology Timothy J. Scannell. “This acquisition will bolster Stryker Medical’s bed offerings and allow us to offer additional solutions to our customers.”
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