Stryker (NYSE:SYK) is about to add another asset to its portfolio. The company announced that it has signed a definitive agreement to acquire Berchtold Holding for an enterprise value of $172 million. Berchtold is a privately held manufacturer of surgical infrastructure equipment based in Germany.
Stryker's acquisition-to-be has been in business for more than 90 years and sells products such as surgical lighting systems and equipment booms. In the press release announcing the deal, Stryker said that "combining these complementary solutions with Stryker Endoscopy's existing operating room equipment portfolio will create a comprehensive, quality-focused offering equipped to satisfy a wide range of customer needs around the globe."
In recent times, hospitals have been consolidating the suppliers they do business with in order to obtain higher discounts, which has led some suppliers to widen their range of products.
The deal is expected to close in Q2 of this year and is anticipated to be neutral to Stryker's earnings per share, excluding certain acquisition-related costs.