Stryker sells physiotherapy unit, continues focus on ortho/medsurg:
This article was originally published in Clinica
Executive Summary
Consistent with its strategy to divest non-core operations and channel further resources into its main orthopaedic and medical/surgical (medsurg) businesses, orthopaedics company Stryker has sold its physiotherapy business, Physiotherapy Associates (PA), to private equity group Water Street Healthcare Partners for $150m in cash. Kalamazoo, Michigan-based Stryker will record a post-tax gain of $22-26m in the second quarter of 2007 from the sale. PA, which provides a range of outpatient physical therapy services through 475 clinics in 31 US states, brought in revenues of $258.4m and a net profit of $6.3m for Stryker in 2006. However, the company maintains a bullish outlook for its continuing operations, forecasing sales increase of 11-13% for 2007 based on growth in shipments of its orthopaedic implants and medsurg equipment.