Stryker Commits to Buy Physio-Control International

Medical device maker Stryker Corporation (Kalamazoo, MI, USA) will buy Physio-Control International (Redmond, WA, USA) for USD 1.28 billion in a bid to expand its emergency medical services (EMS) business.

Physio-Control, currently a portfolio company of Bain Capital Private Equity (New York, NY, USA), develops, manufactures, and markets monitors, defibrillators, automated external defibrillators (AEDs), and cardiopulmonary resuscitation (CPR)-assist devices, along with data management and support services. The company's portfolio, which is highly complementary to Stryker's EMS offering, is expected to create a greater balance between capital and disposables in the company, and is also projected to expand Stryker's global footprint by promoting an enhanced presence and infrastructure.

“Physio-Control has achieved global leadership positions with a strong brand and customer centered solutions that can predict or intervene in life-threatening emergencies,” said Kevin Lobo, Chairman and CEO of Stryker. “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.”

“Joining Stryker is an exciting next step in the evolution of Physio-Control for both our team and our customers,” said Brian Webster, President and CEO of PhysioControl. “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.”

“It has been a privilege to work collaboratively with Brian and the management team as the company has shown great progress and built even more enduring customer loyalty,” said Chris Gordon, a managing director at Bain Capital Private Equity. “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.”

Stryker has been following an aggressive acquisition-driven strategy to boost growth over the last three years, resulting in a total of 12 targeted deals that have greatly expanded its product portfolio, the latest being the purchase of Sage Products (Cary, IL, USA) for USD 2.775 billion in cash in January 2016.

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Stryker Corporation
Physio-Control International
Bain Capital Private Equity