NEW YORK (TheStreet) -- Shares of Stryker Corp. (SYK) - Get Report are down by 1.21% to $97.95 at the start of trading on Monday, as the company announced it will acquire SageProducts for $2.78 billion in cash from private equity firm Madison Dearborn Partners.

Sage makes and distributes disposable health and personal care products for hospitals and retail markets. The company also makes products designed for "never events," such as infections acquired from the hospital.

"The company's established leadership team and innovative products that help prevent hospital acquired conditions have driven consistent double-digit sales growth," Stryker Chairman and CEO Kevin A. Lobo said in a statement.

"Today, through our Medical division, Stryker offers products that are complementary to those produced by Sage."

Kalamazoo, MI-based Stryker manufactures medical devices and equipment.

Stryker has also raised its full year adjusted earnings per share estimates by 5 cents to be between $5.55 and $5.75.

The deal is expected to close in the second quarter.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on the stock.

This is driven by a few notable strengths, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.

The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity.

The team believes its strengths outweigh the fact that the company shows weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: SYK

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