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 for both our team and our customers,” added Physio-Control president & CEO Brian Webster. “Stryker has a deep understanding of capital equipment and of our core market segments. We will build on the success our team has achieved in partnership with Bain Capital, and further accelerate the execution of our strategy, including continued investment in great product solutions for our customers.”
“It has been a privilege to work collaboratively with Brian and the management team as the company has shown great progress and built even more enduring customer loyalty,” Bain managing director Chris Gordon said. “Physio-Control has added significant operational strength and made substantial investments in R&D to accelerate the development and launch of its next generation product lines. We believe the business is well positioned for further growth, and are confident that Physio-Control will continue to thrive under Stryker’s ownership.”
