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 Stryker has been on the look out for deals. The company earlier this
month inked a deal with medical supplies maker Sage Products LLC for
$2.78 billion and said it had the capacity and the capital for more
deals.
The company would be a bit more active in terms of deals this year,
Stryker Chief Executive Kevin Lobo said on a call with analysts on
Tuesday.
Redmond, Washington-based Physio-Control, a unit of Bain Capital
Private Equity, makes devices such as defibrillators for emergency
treatment of cardiac arrests.
Sudden cardiac arrest is one of the leading causes of death
worldwide. The condition accounts for over 300,000 deaths in the
United States annually, Stryker said.
Physio-Control was a unit of heart device maker Medtronic Plc since
1998, but was spun-off in 2006. Five years later, Bain Capital
acquired Physio-Control, which had fiscal 2015 sales of $503
million.
Stryker raised its full-year adjusted earnings forecast to
$5.57-$5.77 per share from the $5.55-$5.75 range it estimated when
it bought Sage Products.
The company also said it expects the acquisition of Physio-Control
and Sage Products to add about 15-18 cents per share to earnings in
2017.
The Physio-Control deal would also boost Stryker's emergency medical
systems business in European countries including North Ireland,
Sweden and Denmark.
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Emergency medical services, also known as ambulance services,
provides out-of-hospital acute medical care and medical transport to
patients who are unable to reach the hospitals due to sudden illness
and injuries.
Citi and Jefferies LLC advised Stryker for the Physio-Control deal
while Skadden, Arps, Slate, Meagher & Flom LLP was its legal
counsel. Kirkland & Ellis LLP was the legal counsel to Bain Capital.
Stryker's shares were up 0.52 percent at $97.79 on the New York
Stock Exchange on Tuesday.
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