Medical technology company Stryker Corp. said today it has acquired the privately held medical device remanufacturer Ascent Healthcare Solutions, Inc. in a $525 million cash transaction.
The acquisition will become a division of Stryker operating under the MedSurg group of businesses and will continue to be known as Ascent Healthcare Solutions.
"Conducted in accordance with FDA regulations, reprocessing and remanufacturing is one of the most impactful programs in use at hospitals, allowing for significant costs savings to the healthcare system," said Stryker CEO Stephen P. MacMillan. "Additionally, Ascent's programs allow its partner hospitals to divert thousands of pounds of medical waste from landfills while simultaneously redirecting substantial financial resources to patient care quality initiatives."
Ascent Healthcare Solutions was formed through the 2005 merger of Vanguard Medical Concepts and Alliance Medical Corporation. With reprocessing facilities in Phoenix, AZ, and Lakeland, FL, Ascent provides its services to 1,800 hospitals and group purchasing organizations throughout North America. Ascent's product offering includes cardiovascular, orthopedics, gastroenterology, and general surgery devices that must comply with the FDA's 510(k) and Quality System Regulation requirements.
Ascent, with a staff of more than 900, reported 2008 sale in excess of $100 million.
The boards at Stryker and Ascent Healthcare Solutions have approved the transaction, which is expected to close by the end of the year.