Stryker Corporation to buy Sage Products in Cary for $2.78 billion

CARY – A proposed $2.78 billion deal announced Monday to acquire medical device maker Sage Products shouldn't lead to immediate major changes within the Cary company beyond the ownership title.

A mainstay in the McHenry County business community since 1980, Sage Products will keep its headquarters in Cary, brand and core executive team intact, even though Michigan-based Stryker Corporation agreed to acquire Sage Products for $2.78 billion.

With a presence in more than 100 countries, Stryker manufacturers medical devices primarily in the orthopedics, medical and surgical specialties.

The international company recently reported $9.94 billion in net sales for 2015. By comparison, Sage Products totaled $430 million in sales, up 13 percent from 2014.

"We are fully aligned with Sage's strategy and culture, and we see this acquisition as a very strong addition to our existing product portfolio," Kevin Lobo, CEO and chairman of Stryker Corporation, said in a statement. "Stryker looks forward to helping Sage continue its impressive growth trajectory around the world while remaining true to its roots and local community engagement."

Once the deal is finalized, Sage Products will join Stryker's medical division, which already features products similar to the medical and surgical devices Sage manufacturers.

Sage's approach toward preventative health care aligns with Stryker's corporate mindset, Lobo said.

Chicago-based private equity firm Madison Dearborn Partners has owned Sage Products since winter 2012, following an undisclosed deal to acquire majority ownership.

It's unclear why Madison Dearborn decided to sell Sage Products after three years. A request for comment was not returned Monday.

Sage is a major business in McHenry County, employing more than 700 area residents and maintaining a visible community presence since relocating to the county in 1980.

Through donations and sponsorships, Sage estimated earlier this winter that its employees have supplied area nonprofits with $3.71 million over the past 10 years.

The Sage name appears often on numerous buildings throughout the county, from the Sage YMCA in Crystal Lake to the Centegra Sage Cancer Center in McHenry.

With the latest acquisition, Sage will maintain founder Vince Foglia as board chairman and Scott Brown as president and CEO.

The Cary company will continue to grow internationally with this deal, Brown said, commending Madison Dearborn for helping the company go global.

"We are grateful for [Madison Dearborn]'s partnership over the past few years and believe that Sage is well positioned for continued achievement and long-term success with Stryker, a company that understands our business, supports our goals and embraces our values," Brown said.

The proposed deal still needs to clear the necessary regulatory approvals. The acquisition should be finalized later this spring, both companies said.