Stryker Corporation (NYSE: SYK) announced on Tuesday it has entered
into an agreement to acquire 100 percent of Physio-Control International for $1.28 billion.
Physio-Control develops, manufacturers and markets monitors and defibrillators, automated external defibrillators and
CPR-assisted devices along with data management and support services. The company was previously owned by Bain Capital Private
Equity.
Stryker noted that Physio-Control's portfolio is "highly complementary" to its own Stryker Medical's EMS offerings and will also
expand Stryker's global footprint.
Physio-Control recorded sales of $503 million in fiscal 2015, up 6 percent in constant currency from the prior year.
"Physio-Control has achieved global leadership positions with a strong brand and customer-centered solutions that can predict or
intervene in life-threatening emergencies," stated Kevin A. Lobo, Chairman and Chief Executive Officer. "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."
Stryker expects the transaction to close in the second quarter and be "slightly" accretive to its 2016 earnings per share. As
such, the company revised its earnings per share guidance for the full fiscal year higher to a range of $5.57 to $5.77 after
previously guiding its earnings per share to a range of $5.55 to $5.75.
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