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Stryker Corporation announced today a definitive agreement to acquire privately held Gaymar Industries. Under the terms of the agreement, Stryker will acquire Gaymar Industries for approximately $150 million in cash. Gaymar specializes in support surface and pressure ulcer management solutions as well as the patient temperature management segment of the healthcare industry, with a portfolio of capital and disposable products in U.S. and international markets. The transaction is expected to close by Oct. 1, 2010, and the deal was approved by the boards of directors of both Stryker and Gaymar Industries.
Gaymar Industries was founded in 1956 and has been owned by private equity firms Nautic Partners and Norwest Equity Partners since 2003. Stryker's Medical division and Gaymar have had a successful 10-year original equipment manufacturer (OEM) relationship whereby Gaymar has been providing Stryker with exclusive rights to sell support surface and pressure ulcer management products to acute-care customers in North America. The acquisition expands Stryker's product offerings in the high-performance support surface and pressure ulcer management market, while also providing a complementary product offering to its existing customer base through its temperature management technology platform. Following the global economic contraction in late 2008 and early 2009, which adversely impacted hospital spending, Gaymar refocused its management and business strategy and has since demonstrated an impressive recovery consistent with its history as a growing specialty products company. Gaymar achieved sales of approximately $77 million in 2009, of which approximately $14 million were related to the existing OEM relationship with Stryker.
"The acquisition of Gaymar Industries is consistent with our strategic goal of expanding our existing product offering and extensive sales force presence via innovative and value added products," says Stephen P. MacMillan, chairman, president and CEO of Stryker. "In addition to a talented team, Gaymar provides our medical division with an attractive portfolio of high-performance support surface and pressure ulcer management products that target an approximately $1.8 billion worldwide market, while simultaneously enhancing our customer relationships through the addition of their temperature management offering."
"We are thrilled to become part of Stryker and broaden the availability of our clinically proven products," says Kent Davies, CEO of Gaymar. "The integration of our complementary product portfolio will strengthen Stryker's leadership in patient handling while driving innovations that can help prevent adverse events and reduce healthcare costs. Through Stryker, we will provide more opportunities to our employees, our customers and the patients that we serve."