Stryker plans $4 billion debt for Physio-Control, Sage transactions

By Lisa Kerner

Charlotte, N.C., Feb. 17 – Stryker Corp. will use cash and issue about $3.5 billion to $4 billion of debt to fund its $1.28 billion acquisition of Physio-Control International, Inc. and its previously announced acquisition of Sage Products, LLC, said chief financial officer Bill Jellison.

According to Jellison, Stryker is comfortable with its ability to finance the transactions and remains committed to an investment-grade rating.

Jellison made his comments during a conference call on Wednesday.

The Physio-Control transaction is expected to be slightly accretive to 2016 adjusted earnings per share.

Closing is expected to occur in the beginning of the second quarter.

On Feb. 1, Stryker announced its all-cash $2.78 billion purchase of Sage from Madison Dearborn Partners.

Stryker is a medical technology company based in Kalamazoo, Mich.

Physio-Control is a Redmond, Wash.-based developer, manufacturer, seller and servicer of external defibrillator/monitors and emergency medical response products and services. Sage Products is a Cary, Ill.-based developer of products primarily for hospital-intensive care units, which help prevent hospital-acquired conditions.

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