Stryker Acquires Assets Of CHG Hospital Beds
By Jof Enriquez,
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Stryker Corporation recently acquired the assets of Canada-based CHG Hospital Beds, Inc. in an all-cash deal. The details of the financial transaction were not made available.
In a recent press release, Stryker stated that the deal will be neutral to the company’s 2015 earnings per share, excluding acquisition, integration-related, and intangible amortization charges. The company reported that the acquisition will be accretive thereafter.
Based in London, Ontario, Canada, CHG manufactures low-height hospital beds and related accessories designed to minimize the risk of falls among patients. The company’s markets include the United States, Canada, and the United Kingdom.
“The acquisition of CHG aligns with Stryker's commitment to offering products that enhance the quality of care for both patients and healthcare professionals; in this case, aiding in the prevention of patient related injuries resulting from a fall from a hospital bed,” said Timothy J. Scannell, the group president of MedSurg and Neurotechnology at Stryker, in the press release. “This acquisition will bolster Stryker Medical’s bed offerings and allow us to offer additional solutions to our customers.”
Among the products to be acquired is the recently-launched Spirit One hospital bed ‒ an expandable, low-height bariatric bed for the acute care segment, according to the statement.
“CHG’s beds allow a patient's feet to sit flat on the floor while he/she is sitting at the edge of the bed,” Stryker added in the press release. “The low-height design helps reduce the risk of patient falls that are related to entering and exiting hospital beds.”
As noted in an article on MLive.com, hospital beds were one of Stryker’s original product lines when orthopedic surgeon and company founder Dr. Homer Stryker started selling products in 1941. Since then, the Michigan-based medical device company has expanded its offerings to include orthopedic implants, reconstructive surgical devices and tools, neurotechnology, and spine products.
More recently, Stryker has been actively pursuing deals in the continuously consolidating orthopedics segment. The company completed a deal to acquire ArthroCare Corporation for an estimated $1.5 billion last year. In addition, Stryker is reportedly planning a takeover of Smith & Nephew (S&N), as described in a recent Med Device Online story.