|Stryker Announces Definitive Agreement to Acquire Privately Held Concentric Medical, Inc. for $135 Million|
Kalamazoo, Michigan - August 31, 2011 - Stryker Corporation (NYSE:SYK) announced today a definitive agreement to acquire privately held Concentric Medical, Inc. (Concentric) in an all cash transaction for $135 million. Founded in 1999 and based in Mountain View, California, Concentric develops, manufactures and markets minimally invasive products for the treatment of acute ischemic stroke (AIS). Concentric's products include devices for the removal of thrombus in patients experiencing acute ischemic stroke along with a broad range of AIS access products. In addition, the company has an IDE clinical trial underway in the U.S. for its next generation clot removal product, the Trevo(TM) Retriever device utilizing Stentriever(TM) technology.
With projected sales in 2011 estimated to be over $30 million, the acquisition of Concentric provides Stryker immediate access into the AIS market segment in the U.S., Europe and Japan. Also, it brings Concentric, the leading team in AIS, together with Stryker Neurovascular's leading team in hemorrhagic stroke, to provide complete interventional stroke care for customers and patients around the world.
"Stryker is committed to advancing care within the interventional neurovascular space. The acquisition of Concentric Medical and its leadership team provides us with the opportunity to leverage our global distribution capabilities and help bring innovative treatment options to the large and underserved ischemic stroke population," said Stephen P. MacMillan, Chairman, President and Chief Executive Officer of Stryker.
The transaction is subject to customary closing conditions. Upon closing, the transaction is expected to be neutral to Stryker's 2011 earnings per share. The transaction is expected to close early in the fourth quarter of 2011.
Citi served as Stryker's exclusive financial advisor in connection with this transaction.
Stryker is one of the world's leading medical technology companies and is dedicated to helping healthcare professionals perform their jobs more efficiently while enhancing patient care. The Company offers a diverse array of innovative medical technologies including reconstructive implants, medical and surgical equipment, and neurotechnology and spine products to help people lead more active and more satisfying lives. For more information about Stryker, please visit www.stryker.com.
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This press release contains information that includes or is based on forward-looking statements that are subject to various risks and uncertainties that could cause the Company's actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening of economic conditions that could adversely affect the level of demand for the Company's products; pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for the Company's products; changes in foreign exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect U.S. Food and Drug Administration approval of new products; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; resolution of tax audits; changes in financial markets; changes in the competitive environment; and the Company's ability to consummate and integrate acquisitions, including the acquisition of Concentric Medical. Additional information concerning these and other factors are contained in the Company's filings with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.