Pharma BD Deal Intelligence

Stryker Corporation / Gaymar Industries

2010 · Acquisition/Merger · $150M · Complete

Stryker's $150M cash buyout converted a decade-long OEM supply deal into outright ownership of Gaymar's pressure-ulcer and temperature-management device lines. Both acquired manufacturing plants closed within two years and roughly 160 jobs were cut, though the underlying product technology survived inside Stryker's Acute Care portfolio.

WRONG BY 29 POINTS
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The coverage arc

Aug 26, 2010 HealthLeaders Media Neutral

Stryker buys Gaymar Industries for $150 million, broadening its capital and disposable product portfolio in pressure ulcer management and temperature…

Aug 26, 2010 MedCity News Bullish

MedCity News framed the $150M Gaymar acquisition as a logical extension of a 10-year OEM relationship and an attractive bolt-on for Stryker's Medical division…

Aug 26, 2010 Stryker Corporation Form 8-K Exhibit Bullish

Stryker announces definitive agreement to acquire privately held Gaymar Industries for approximately $150 million in an all-cash transaction, expanding into…

Source summaries from our enrichment pipeline; follow links for originals.

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Stryker to acquire privately held Gaymar Industries for $150M cash, formalizing 10-year OEM partnership in pressure ulcer/temperature management devices.

Did it work? Outcome assessment

Strategic verdict
Achieved Stated Rationale
Financial impact
Neutral
$150M all-cash deal was immaterial to Stryker's multi-billion-dollar revenue base. No subsequent goodwill impairment tied to Gaymar has been disclosed; the assets were absorbed into Stryker's Medical division (later Acute Care / Patient Handling), which Stryker continued to grow organically over the decade.
Pipeline outcome
Assets Advanced
Gaymar's support-surface/pressure-ulcer and temperature-management product lines were folded into Stryker Medical and remained commercially active; temperature management complemented Stryker's later patient-warming and acute-care offerings rather than being discontinued.

Key facts

Disease & market context

Hospital Pressure Ulcer Prevention & Temperature Management

$1.8B Global support-surface / pressure-ulcer device market 2010 (Stryker estimate)

Disease Overview

Hospital-acquired pressure injuries are localized skin and tissue damage caused by sustained pressure on bony prominences, common in immobile ICU and long-term acute-care patients. Stage 3 and 4 pressure ulcers are CMS-designated never-events that hospitals are not reimbursed for, driving demand for therapeutic support surfaces, low-air-loss mattresses, and active microclimate / temperature management systems.

Competitive Landscape

The 2010 US pressure-ulcer and support-surface market was led by Hill-Rom (the dominant integrated bed-and-surface vendor), KCI/Kinetic Concepts (best known for V.A.C. negative-pressure wound therapy and the newly launched Skin IQ Microclimate Manager coverlet), Arjo, Smith & Nephew, and Mölnlycke on the prevention dressings side. Stryker had a leading Medical division position in stretchers and patient-handling but had relied on a 10-year OEM relationship with Gaymar to source therapeutic support surfaces for its acute-care hospital channel — about $14M of Gaymar's $77M 2009 revenue came directly from that arrangement. Acquiring Gaymar pulled support-surface and temperature-management margin in-house and added a defensive line against Hill-Rom's bundled bed-plus-surface offerings. The $1.8B worldwide market identified in Stryker's release was attractive given hospital capital cycles and CMS never-event policy, which was steering hospitals toward higher-tier therapeutic surfaces. Stryker guided to EPS-neutral in 2010-2011 and accretive thereafter, signaling the deal was a strategic in-fill rather than a near-term financial driver. The acquisition is generally viewed as a sensible bolt-on: low strategic risk, captive demand, and expanding TAM. Source: https://investors.stryker.com/press-releases/news-details/2010/Stryker-Announces-Plans-to-Acquire-Privately-Held-Gaymar-Industries-for-150-Million/default.aspx

Related deals — scored

DealYearValueOutcome
Stryker Corporation / Gaymar Industries (this deal)2010$150M54
Stryker Corporation / MAKO Surgical Corp.2013$1.6B91
Stryker Corporation / Wright Medical Group N.V.2019$5.4B81
Stryker Corporation / Trauson Holdings Company Limited2013$764M37
Stryker Corporation / Inari Medical, Inc.2025$4.9B
Watson Pharmaceuticals (Actavis Inc.) / Actavis plc2012$5.9B97
Kohlberg Kravis Roberts & Co. / PRA International (Genstar Capital)2013$1.3B91

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