Stryker is Buying Sage Products

Big news today from Stryker (SYK). The company announced that it’s buying Sage Products for $2.775 billion. Sage is currently owned by Madison Dearborn Partners, a private equity firm.

According to Stryker, “The transaction includes an anticipated future tax benefit which is expected to exceed $500 million and to positively impact cash flows over approximately 15 years.”

Stryker said they hope the deal will close during Q2. They’re also raising their full-year guidance by five cents at both ends. The new range is $5.55 to $5.75 per share.

“The company`s established leadership team and innovative products that help prevent hospital acquired conditions have driven consistent double-digit sales growth,” stated Kevin A. Lobo, Chairman and Chief Executive Officer. “This acquisition aligns with Stryker`s focus on offering products and services that support a mindset of prevention, specifically in the area of “Never Events” such as hospital acquired infections. Today, through our Medical division, Stryker offers products that are complementary to those produced by Sage. Sage has a 45-year history of focus on patients and caregivers that is evident in their culture and fits well with our Medical division. This business will also provide a consistent disposable revenue stream that will complement our capital equipment offerings. We look forward to welcoming the Sage team to Stryker.”

Last week, Stryker reported Q4 earnings that topped consensus by one penny per share.

Posted by on February 1st, 2016 at 10:10 am


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