Stryker Acquires PlasmaSol
KALAMAZOO — Kalamazoo medical device giant Stryker Corp. finished up 2005 with a bang last week, as it acquired all the outstanding stock of PlasmaSol Corp. before leaving for the extended holiday weekend on Friday.
PlasmaSol is a private, development stage company that has developed a technology that should be useful in sterilizing much of Stryker’s MedSurg Equipment products. The cost of the transaction, announced this morning, totals approximately $17.5 million, including an up-front cash payment and the assumption of certain liabilities.
The transaction will result in an estimated fourth quarter 2005 after-tax charge of $16 million, or $0.04 per diluted share, reflecting the write-off of in-process research and development costs.
A press release this morning also indicated that it has completed the previously announced repatriation of $722 million of undistributed foreign earnings under the provisions of the American Jobs Creation Act of 2004, at a cost of $31.3 million. This should reduce its previously recorded income tax expense by approximately $3.9 million in the fourth quarter of 2005.