Publicly traded Stryker Corporation has signed an agreement to acquire Sage Products, a developer of healthcare products used in hospital settings and a portfolio company of Madison Dearborn since November 2012. Stryker will pay just under $2.8 billion in cash for Sage.
Sage Products is a developer of products used to prevent hospital-acquired conditions such as ventilator-associated conditions, skin ulcerations due to incontinence, pressure ulcers, surgical site infections and healthcare worker injury. Sage’s products include oral care, skin preparation and protection, patient cleaning and hygiene, turning and positioning devices and heel care boots. The company’s products are used mainly in the intensive care and medical/surgical hospital units. Sage’s sales for fiscal 2015 totaled $430 million, up 13% over the prior year. Sage was founded in 1971 and has more than 800 employees in the US, Canada, and Europe. The company operates a 600,000 square-foot facility in Cary, a northwest suburb of Chicago (www.sageproducts.com).
“With Madison Dearborn’s support, our business has grown domestically and we have achieved significant initial success with our international expansion,” said Scott Brown, President and CEO of Sage Products. “We are grateful for Madison Dearborn’s partnership over the past few years and believe that Sage is well-positioned for continued achievement and long-term success with Stryker.”
Stryker is a Fortune 500 medical technologies firm (NYSE:SYK). The company’s products include implants used in joint replacement and trauma surgeries; surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling and emergency medical equipment; neurosurgical, neurovascular and spinal devices; as well as other medical device products used in a variety of medical specialties. In the US, most of Stryker’s products are marketed directly to doctors, hospitals and other healthcare facilities. Internationally, Stryker products are sold through company-owned sales subsidiaries and branches as well as third-party dealers and distributors. The company was founded in 1946 by Homer Stryker and is headquartered in Kalamazoo, MI (www.stryker.com).
J.P. Morgan (www.jpmorgan.com) served as Stryker’s financial advisor and Sullivan & Cromwell (www.sullcrom.com) served as legal counsel. Barclays (www.banking.barclaysus.com) is serving as Sage’s financial advisor and Kirkland & Ellis (www.kirkland.com) and Madden, Jiganti, Moore & Sinars (www.mjms.com) are serving as legal counsel for Sage. The Kirkland team was led by corporate partners Sanford Perl, Mark Fennell and Matthew Mauney.
© 2016 PEPD • Private Equity’s Leading News Magazine • 2-1-16