Medical device maker Stryker to buy Physio-Control for $1.28 billion

(Reuters) - Medical device maker Stryker Corp (NYSE: SYK) said it would buy Physio-Control International Inc for $1.28 billion in cash to expand its emergency medical services business and raised its earnings forecast for the second time this month.

Redmond, Washington-based Physio-Control, a unit of Bain Capital Private Equity, makes devices such as defibrillators for emergency treatment of cardiac arrests.

Stryker raised its full-year adjusted earnings forecast to $5.57-$5.77 per share from the $5.55-$5.75 range it estimated when it bought medical supplies maker Sage Products LLC two weeks ago.

The company also said it expects the acquisition of Physio-Control and Sage Products to add about 15-18 cents per share to earnings in 2017.

Stryker inked a deal to buy Sage Products for $2.78 billion on Feb. 1.

Citi and Jefferies LLC advised Stryker for the Physio-Control deal while Skadden, Arps, Slate, Meagher & Flom LLP was its legal counsel. Kirkland & Ellis LLP was the legal counsel to Bain Capital.

(Reporting by Rosmi Shaji in Bengaluru; Editing by Maju Samuel and Don Sebastian)

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