Stryker Corp. (NYSE:SYK) agreed to drop $150 million in cash on Gaymar Industries Inc., which makes treatments for pressure ulcers and temperature management equipment.
The deal, expected to close by Oct. 1, is the latest development in a 10-year relationship between the two companies. Orchard Park, N.Y.-based Gaymar manufactures products for Stryker on an OEM basis for sale in North America.
Kalamazoo, Mich.-based Stryker said the acquisition expands its portfolio of acute care offerings. Gaymar posted sales of about $77 million last year, according to a press release, with about $14 million of that stemming from the OEM deal with Stryker.
Stryker said the deal will not affect its 2010 or 2011 earnings per share, but should start adding to its bottom line in 2012. Gaymar is owned by private equity firms Nautic Partners and Norwest Equity Partners.
SYK shares were down 0.07 percent to $43.17 in mid-day trading.