Furthering its recent expansion plans, Stryker Orthopedics, manufacturer of the recalled Rejuvenate and ABG II modular hip implant systems subject to multidistrict litigation in Minnesota federal court (In re: Stryker Rejuvenate and ABG II Hip Implant Products Liability Litigation, MDL No. 2441), has reached an agreement to acquire Sage Products for $2.775 billion in cash — its largest ever acquisition.Sage Products manufactures and provides U.S. hospitals with a diverse offering of disposable intensive-care products for patient cleaning, turning and positioning, oral care and skin preparation. As Sage’s main clients are hospitals, Stryker will be afforded the opportunity to better market and increase the reach of their products.
Sage President and CEO, Scott Brown, announced the beneficial nature of the transaction given that Stryker “[u]nderstands our business, supports our goals and embraces our values.”
Expected to close by the end of Q2, the deal will allow Stryker to garner a tax benefit of approximately $500 million and increase its cash flow over the next 15 years with consistent disposable revenue as Sage reported total sales of $430 million in 2015 alone.
Stryker also recently purchased other companies including Berchtold Holding AG (April 2014), Small Bone Innovations (July 2014), CHG Hospital Beds (January 2015), Pivot Medical (February 2015) and Muka Metal (July 2015). Though consolidation is primarily driven by financial considerations, there is hope that resulting efficiencies will prompt these Stryker and other orthopedic device companies to more accurately test their products and deliver safer medical devices to the market.
If you or a family member have a Stryker hip implant (with or without suffering symptoms, side effects or related conditions), or have had revision surgery to remove and replace a hip implant, you and/or your family member may be entitled to money damages.