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KALAMAZOO, Michigan — Orthopedics device maker Stryker has reached a $525 million agreement to acquire a Phoenix, Arizona-based medical device reprocessor and remanufacturer.
The all-cash deal for Ascent Healthcare Solutions is expected to close by the end of the year, according to a statement from Stryker.
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With sales last year of $100 million and 900 employees, Ascent operates reprocessing plants in Phoenix and Lakeland, Florida. It provides services to 1,800 hospital and group purchasing organizations, according to the statement.  Ascent’s products include orthopaedics, gastroenterology and general surgery devices.
Stryker’s move could signal a shift in the device industry, which in the past has been wary of reprocessing devices. Reprocessing, which involves cleaning, sterilizing and testing medical devices for reuse has become more prevalent in recent years, the Wall Street Journal has reported. The Government Accountability Office said in 2008 that using reprocessed devices doesn’t increase risk to patients, according to the Journal.
“Reprocessing and remanufacturing is one of the most impactful programs in use at hospitals, allowing for significant cost savings to the health care system,” Stephen MacMillan, Stryker’s chief executive, said in the statement.
