|Future CLW--Courtesy of Muka|
Stryker ($SYK) has only disclosed plans for two acquisitions this year--both for private, international, hospital bed makers. The latest is an all-cash deal for Turkish hospital bed, stretcher and patient room furniture and accessory maker Muka, which is headquartered in Kayseri, Turkey.
The financial details of the deal are undisclosed; it is expected to close this quarter. Stryker and Muka have an existing relationship already--a distribution deal for Latin America that's been in place since 2012.
"The acquisition of Muka aligns with our strategy to expand our global presence through existing channels with an established and trusted brand," Timothy Scannell, Stryker Group President of MedSurg and Neurotechnology, said in a statement. "This acquisition will bolster Stryker Medical's bed and stretcher offerings, and is a compelling opportunity to drive growth in Turkey and other regions around the world."
The newly acquired company will fall under Stryker's Medical and Surgical business, which had $927 million in sales last quarter--giving it a gain of 4.6% over the same quarter a year earlier, which made it the top performing segment as compared to orthopedics as well as neurotechnology and spine. Overall during the first quarter, Stryker reported $2.4 billion in sales with an increase of 3.2%.
International sales are a bit of a weak spot for Stryker. During the first quarter, its international sales fell 7.4% to $706 million on an as-reported basis, but including the currency exchange, gained 5.4%. Still, the company's international sales are typically underperforming its U.S. sales.
The Muka deal, follows a similar acquisition that Stryker announced in January for London, Ontario, Canada-based CHG Hospital Beds for an undisclosed sum.
Here's how Stryker VP of Strategy and Investor Relations Katherine Owens described that deal on a late January earnings call, "In early January, we completed our most recent acquisition of privately held CHG hospital beds, which show a series of innovative, low height hospital beds and related accessories in markets across Canada, the U.S. and U.K. The low height design helps reduce the risk of patient falls that are related to entering and exiting hospital beds."
She added, "Amongst CHG's innovative offerings is the recently launched Spirit One bed, which is an expandable low-height bariatric bed for the acute care segment. With this acquisition we're able to expand medical offerings of products that enhance the quality of care for both patients and healthcare professionals by helping to prevent patient related injuries resulting from a fall from a hospital bed."
- here is the release