Medical device firm Stryker to buy Sage for $2.78bn

According to Reuters, Stryker, the medical device manufacturer is to buy Sage Products from private equity firm Madison Dearborn Partners.

The deal is said to be worth $2.78bn (£1.94bn) and will close in the second quarter of this year.

Sage Products’ expertise includes medical products which control hospital-acquired infections and are aimed at reducing ’never events’, particularly in intensive care settings.

Speaking to Streetinsider, Kevin Lobo, chairman and chief executive officer, Stryker, said: "The company's established leadership team and innovative products that help prevent hospital acquired conditions have driven consistent double-digit sales growth. This acquisition aligns with Stryker's focus on offering products and services that support a mindset of prevention, specifically in the area of ‘never events’ such as hospital acquired infections. Today, through our medical division, Stryker offers products that are complementary to those produced by Sage. Sage has a 45-year history of focus on patients and caregivers that is evident in their culture and fits well with our medical division. This business will also provide a consistent disposable revenue stream that will complement our capital equipment offerings. We look forward to welcoming the Sage team to Stryker."