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Stryker to acquire Gaymar Industries for $150 Million

Published: 00:52 26 Aug 2010 BST

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Medical technology company Stryker Corporation (NYSE: SYK) has agreed to acquire private-equity backed Gaymar Industries, a company that specializes in support surface and pressure ulcer management solutions as well as the temperature management segment of the healthcare industry, in a $150 million all-cash transaction.

Gaymar has been owned by private equity firms Nautic Partners and Norwest Equity Partners since 2003.  For the past 10 years, Stryker's Medical division and Gaymar have had a successful original equipment manufacturer relationship whereby Gaymar has been providing Stryker with exclusive rights to sell support surface and pressure ulcer management products to acute care customers in North America.

The acquisition is expected to expand Stryker`s product offerings in the $1.8 billion support surface and pressure ulcer management market, while also providing another product offering through Gaymar`s temperature management technology platform.

Gaymar achieved sales of approximately $77 million in 2009, of which approximately $14 million were related to its relationship with Stryker.

The transaction, which is expected to close by October 1, 2010, is still subject to customary closing conditions. The boards of directors of both Stryker and Gaymar have already approved the transaction though.

Upon closing, the transaction is expected to be neutral to Stryker's 2010 and 2011 earnings per share and accretive thereafter.

Stryker is a medical technology that provides orthopaedic implants as well as medical and surgical equipment to healthcare professionals.

Stryker was up 0.5% today to trade at $43.39 on the New York Stock Exchange.

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