Stryker acquiring Sage Products in $2.7 billon deal
Medical technology company Stryker plans to acquire Cary, Ill.–based Sage Products, which manufactures a host of products meant to prevent so-called “never events” in ICUs and hospitals, including hospital-acquired infections.
The all-cash transaction is valued at $2.775 billion, and is expected to close in the second quarter of 2016, pending customary closing conditions.
Founded in 1971, Sage Products is a $430-million-a-year business that makes and distributes products for oral care, skin preparation and protection, patient cleaning and hygiene, and turning and positioning of patients, as well as heel care boots.
Sage Products sales were up 13 percent in 2015.
“The company's established leadership team and innovative products that help prevent hospital-acquired conditions have driven consistent double-digit sales growth," Stryker CEO Kevin Lobo said in a release.
Sage’s portfolio of disposable products also complement Stryker products including ICU and hospital beds. The Sage acquisition goes along with Stryker’s growth strategy, which Lobo recently described as being based on a diversified sales footprint bolstered by “healthy R&D investment and a focus and disciplined M&A effort."
Editor
Editor Beth earned a bachelor’s degree in journalism and master’s in health communication. She has worked in hospital, academic and publishing settings over the past 20 years. Beth joined TriMed in 2005, as editor of CMIO and Clinical Innovation + Technology. When not covering all things related to health IT, she spends time with her husband and three children.