Stryker buys Physio-Control for $1.28B in 3rd February 2016 acquisition: 6 key notes

Written by Laura Dyrda | February 16, 2016 | Print  |

Stryker signed a deal to acquire Physio-Control in an all-cash transaction.

Here are five things to know:

 

1. Stryker acquired 100 percent of Physio-Control's stock in a $1.28 billion purchase. Physio-Control is in the Bain Capital Private Equity portfolio company that manufactures, develops and markets monitors and defibrillators, automated external defibrillators and CPR-assist devices along with data management and support services.

 

2. Physio-Control's products will complement Stryker Medical's Emergency Medical Services offering to drive balance between capital and disposables.

 

3. Physio-Control has an enhanced presence and infrastructure to expand Stryker's global footprint. The company has 2015 sales totaling $503 million, which was up 6 percent over the same period last year.

 

4. The companies expect the transaction to close at the beginning of the second quarter and be slightly accretive to Stryker's adjusted per share earnings in 2016. The revised adjusted EPS guidance for the year is now $5.57 to $5.77, up 8.8 percent to 12.7 percent.

 

5. Stryker's Physio-Control acquisition is the company's third acquisition in February. For 2017, the Sage and Physio-Control combined acquisitions will be accretive by $0.15 to $0.18.

 

6. Stryker's outside legal counsel include Skadden, Arps, Slate, Meagher & Flom. Bain Capital's legal counsel included Kirkland & Ellis while financial advisors were Citi and Jeffries.

 

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