Stryker Corporation announced today the asset acquisition of privately-held CHG Hospital Beds, Inc. (“CHG”) in an all cash transaction. CHG, headquartered in London, Ontario, Canada, sells innovative hospital beds that serve markets across Canada, the United States and the United Kingdom.
Founded in 2003, CHG designs, manufactures and markets a series of low-height hospital beds and related accessories. 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. The low-height design helps reduce the risk of patient falls that are related to entering and exiting hospital beds. Among CHG’s innovative offerings is the recently launched Spirit One bed which is an expandable low-height bariatric bed for the acute care segment.
“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, Group President, MedSurg and Neurotechnology. “This acquisition will bolster Stryker Medical’s bed offerings and allow us to offer additional solutions to our customers.”
The transaction is expected to be neutral to Stryker’s 2015 earnings per share excluding acquisition, integration-related and intangible amortization charges and accretive thereafter.