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February 16, 2016

Stryker signs agreement to acquire Physio-Control International for $1.28bn

Stryker has signed a definitive agreement to buy Physio-Control International in a $1.28bn cash deal.

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Stryker has signed a definitive agreement to buy Physio-Control International in a $1.28bn cash deal.

Founded in 1955, Physio-Control is a portfolio firm of Bain Capital Private Equity, and develops, manufactures and markets monitors/defibrillators, automated external defibrillators (AEDs) and CPR-assist devices besides providing data management and support services.

In 2011, Physio-Control was acquired by Boston’s Bain Capital for $487m.

Stryker said that Physio-Control’s portfolio complements its emergency medical services (EMS) offering and will help achieve a balance between capital and disposables.

Physio-Control’s acquisition is expected to enhance Stryker’s global footprint and infrastructure.

In fiscal year 2015, Physio-Control’s sales reached $503m, an increase of 6% from the previous year.

Stryker Corporation CEO and chairman Kevin A Lobo said: "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."

Physio-Control president and CEO Brian Webster said: "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."

"Physio-Control has made substantial investments in R&D to accelerate the development and launch of its next-generation product lines."

Bain Capital Private Equity managing director Chris Bain 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."

The closure of the transaction is subject to regulatory approvals and other closing conditions.

The deal is expected to close at the beginning of the second quarter of fiscal 2016.

Skadden, Arps, Slate, Meagher & Flom served as outside legal counsel for Stryker in the deal.

Citi and Jefferies acted as financial advisors, and Kirkland & Ellis served as legal counsel to Bain Capital.


Image: Stryker Roll-In-Trage. Photo: courtesy of Fadi/Wikipedia.

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