Stryker Corp. (SYK) said it has agreed to sell a family of its
products and an Ohio manufacturing facility to Tokyo-based Olympus
Corp. (OCPNY, 7733.TO) for $60 million.
The medical-technology company said it will sell to Olympus its
OP-1 product family, which includes products for use in orthopedic
bone applications, as well as its plant in Lebanon, Ohio.
Stryker said it will take a one-time charge of about $75 million
to $80 million in the fourth quarter to reflect the loss on the
sale of the assets. The loss is expected to reduce per-share
earnings by 19 cents to 20 cents in the fourth quarter.
Stryker said that with the sale, it plans to redirect its
related research-and-development spending to other internal
projects it thinks have potential to generate better shareholder
returns.
Both companies' boards of directors have approved the deal.
Stryker did not say when they expect the deal to close.
In October, Stryker said its third-quarter profit grew 47% on an
increase in sales of orthopedic implants and its MedSurg equipment
as well as improved margins.
Shares of Stryker closed at $51.53 and were inactive after
hours. The stock has risen 2.3% this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com