Stryker Corp to buy Physio-Control International from Bain Capital for $1.28 bn

Medical device maker Stryker Corp today struck a deal to buy Physio-Control International Inc from private equity firm Bain Capital for $1.28 billion in cash in order to expand its emergency medical services business.

The deal comes two weeks after Michigan-based Stryker agreed to buy medical supplies maker Sage Products from private equity firm Madison Dearborn Partners for $2.78 billion. (See: US medical device maker Stryker to buy Sage Products for $2.78 bn)

Last week, it also agreed to buy the neuro assets of Synergetics USA, Inc for an undisclosed sum.

"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 Stryker CEO, Kevin Lobo.

Physio-Control's portfolio is highly complementary to Stryker Medical's Emergency Medical Services offering and will drive a greater balance between capital and disposables. Physio-Control will also help to expand Stryker's global footprint

Founded in 1955 by Dr. Karl William Edmark, Physio-Control develops, manufactures, and markets cardiac devices such as automated external defibrillators, or AEDs and CPR-assist devices along with data management and support services.

The Washington-based company was acquired by Eli Lilly and Company in 1980 and sold to Bain Capital in 1994, who in turn sold it to Medtronic in 1998 for $538 million.

Medtronic spun off Physio-Control in 2006 and Bain Capital took it private in 2011 for $487 million.

Physio-Control had sales of $503 million in 2015.

Founded by Dr. Homer Stryker as the Orthopedic Frame company in 1946, Stryker is one of the world's leading medical technology companies offering a diverse array of medical devices, including reconstructive implants, medical and surgical equipment, and neurotechnology and spine products.

It competes with DePuy Orthopaedics, Zimmer Holdings, Medtronic, Synthes, Smith & Nephew, and Biomet, and holds a 16-per cent share in the global orthopaedic market.

The company sells its products through local dealers and direct sales force to doctors, hospitals, and other healthcare facilities, as well as through third-party dealers and distributors primarily in the US, Ireland, Germany, France, Switzerland, the UK, Japan, Canada, the Pacific region, and Latin America.

While the US market accounts for the bulk of its sales, Stryker has been recently trying to focus and expand in emerging markets like India, Brazil, and China.

In late 2014, it was rumored that Stryker was exploring a $16-billion bid for British medical-device maker Smith & Nephew Plc.