Stryker Signs Agreement to Buy Sage Products

Stryker Corporation (Kalamazoo, MI, USA) has announced a definitive agreement to acquire Sage Products (Cary, IL, USA) from Madison Dearborn Partners (Chicago, IL, USA), in an all cash transaction.

Sage develops, manufactures and distributes disposable products targeted at reducing never events, primarily in the intensive care unit (ICU) and medical/surgical hospital unit setting. Examples include decontaminants to ward off infections, cloths to clean incontinent patients, specialized hospital furniture, and tools to reduce the risk of caretaker injury. Other products include solutions for oral care, skin preparation and protection, patient cleaning and hygiene, turning and positioning devices, and heel care boots.

The acquisition, valued at of USD 2.775 billion, will also provide a consistent disposable revenue stream that will complement Stryker capital equipment offerings, and demonstrates that reducing hospital-acquired infections has become a top priority for med tech players, mainly due to US federal government incentives. For example, Sage's patient turning and repositioning system, designed to prevent sacral pressure ulcers, will be complementary to Stryker's hospital bed business.

“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,” said Kevin A. Lobo, Chairman and CEO of Stryker. “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.”

"Over our 45 years, we have achieved incredible growth through our focus on innovation, our Sage culture, and our deep commitment to our community,” said Scott Brown, President and CEO of Sage Products. “We are grateful for Madison Dearborn's partnership over the past few years and believe that Sage is well-positioned for continued achievement and long-term success with Stryker, a company that understands our business, supports our goals and embraces our values.”

Stryker has been following an acquisition-driven strategy to boost growth over the last three years, resulting in a total of eleven targeted deals that have greatly expanded its product portfolio, with most of the acquisitions provided product lines that are complementary to Stryker’s existing product line. The company recently stated that mergers and acquisitions are its top priority.

Related Links:
Stryker Corporation
Sage Products
Madison Dearborn Partners