(RTTNews) -  Orthopedics products maker Stryker Corp. (SYK: News ) announced Monday that it agreed to acquire privately-held Ascent Healthcare Solutions, Inc. for $525 million in an all cash deal.

The transaction has the approval of the board of directors of Stryker and Ascent Healthcare as well as the shareholders of Ascent Healthcare. The transaction, which is expected to close by the end of 2009, is expected to be neutral to Stryker's 2010 earnings per share and accretive thereafter.

However, Kalamazoo, Michigan-based Stryker said that the closure of the deal is conditioned on the expiration or termination of all applicable waiting periods pursuant to the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.

Phoenix, Arizona-based Ascent Healthcare Solutions is the market leader in the reprocessing and remanufacturing of medical devices in the U.S. This allows partner hospitals to divert thousands of pounds of medical waste from landfills and to redirect substantial financial resources to patient care quality initiatives. Ascent's sustainability programs deliver immediate results, driving critical supply chain savings, and supporting environmental stewardship and patient care initiatives.

Ascent had revealed in September that its partner hospitals saved an astounding $82 Million in unnecessary supply chain costs in the first half of 2009 with Ascent's reprocessing and remanufacturing programs. The program successfully diverted over 2.5 Million pounds or 1,286 tons of medical waste from local landfills in the first half of 2009.

Last month, Ascent announced that it has received the industry's first and only 510(k) clearance from the U.S. Food and Drug Administration or FDA to reprocess the Biosense Webster SoundStar 3D Diagnostic Ultrasound Catheter. With this new clearance, Ascent continues to lead the charge in bringing sustainability to healthcare, and represents an immediate savings opportunity of up to 51% of the cost of the original device.
In a statement, Stryker's Chief Executive Officer Stephen MacMillan said, "The acquisition of Ascent Healthcare Solutions with its talented team will enhance our value proposition to hospitals and healthcare providers. Conducted in accordance with FDA regulations, reprocessing and remanufacturing is one of the most impactful programs in use at hospitals, allowing for significant costs savings to the healthcare system.

Following the closure of the proposed acquisition, the Ascent Healthcare Solutions business will become a division of Stryker operating under the MedSurg group of businesses and will continue to be known by its current name itself.

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