Stryker Corporation (SYK) recently completed the acquisition of Ascent Healthcare Solutions, the market leader in the reprocessing and remanufacturing of medical devices in the U.S. The acquisition will be neutral to Stryker’s earnings per share in 2010 and accretive thereafter.
Post-acquisition, Ascent Healthcare Solutions has become a division of Stryker under the company’s MedSurg group of businesses and has retained its name. Ascent Healthcare Solutions Inc. was formed in 2005 by the merger of Alliance Medical Corporation and Vanguard Medical Concepts. These two were the leading players in the reprocessing and remanufacturing of medical devices.
Ascent Healthcare Solutions Inc. provides its services to 1,800 leading hospitals and numerous Group Purchasing Organizations (GPOs) throughout North America. The company has two state-of-the-art reprocessing facilities in Phoenix, Arizona and Lakeland, Florida. Ascent Healthcare Solutions Inc. offers a broad portfolio of products in various fields like cardiovascular, orthopedics, gastroenterology and general surgery.
The company reported revenues in excess of $100 million in 2008. Reprocessing and remanufacturing of medical devices in compliance with the U.S. Food and Drug Administration (FDA) allow significant cost savings by hospitals. Therefore, the acquisition enables Stryker to add value to services it provides to different hospitals and healthcare providers. This in turn boosts the company’s top-line.
Stryker is one of the world’s largest medical devices companies operating in the global orthopedic market. In the orthopedic space, Stryker faces competition from major players like Zimmer Holdings Inc. (ZMH), CONMED Corporation (CNMD), Smith & Nephew (SNN), Johnson & Johnson/DePuy (JNJ) and Wright Medical (WMGI).
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