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Stryker To Make $150 Million Buy

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Kalamazoo-based Stryker Corp. (NYSE: SYK) Wednesday announced an agreement to buy Gaymar Industries Inc. of Orchard Park, N.Y. for $150 million in cash.

Gaymar makes products that prevent and treat pressure ulcers, also known as bed sores — sores that appear on the skin because of lack of mobility, diabetes and other causes.

Gaymar’s products include special cushions, pads, mattresses and beds that relieve pressure on an existing sore and help protect vulnerable areas from further breakdown.

Gaymar also makes products to regulate the internal temperature of patients.

Stryker said the transaction is expected to close by Oct. 1.

Gaymar Industries was founded in 1956 and has been owned by private equity firms Nautic Partners and Norwest Equity Partners since 2003. Stryker’s Medical division and Gaymar have had a successful 10-year 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 expands Stryker’s product offerings in the high-performance support surface and pressure ulcer management market, while also providing a complementary product offering to its existing customer base through its temperature management technology platform.

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

“The acquisition of Gaymar Industries is consistent with our strategic goal of expanding our existing product offering and extensive sales force presence via innovative and value added products,” said Stephen P. MacMillan, chairman, president and CEO of Stryker. “In addition to a talented team, Gaymar provides our Medical division with an attractive portfolio of high-performance support surface and pressure ulcer management products that target an approximately $1.8 billion worldwide market, while simultaneously enhancing our customer relationships through the addition of their temperature management offering.”

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

More at www.stryker.com.

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