Stryker To Sell Product Line, Plant To Olympus For $60 Million

Stryker Corp. (SYK) said it has agreed to sell a family of its products and an Ohio manufacturing facility to Tokyo-based Olympus Corp. (OCPNY, 7733.TO) for $60 million.

The medical-technology company said it will sell to Olympus its OP-1 product family, which includes products for use in orthopedic bone applications, as well as its plant in Lebanon, Ohio.

Stryker said it will take a one-time charge of about $75 million to $80 million in the fourth quarter to reflect the loss on the sale of the assets. The loss is expected to reduce per-share earnings by 19 cents to 20 cents in the fourth quarter.

Stryker said that with the sale, it plans to redirect its related research-and-development spending to other internal projects it thinks have potential to generate better shareholder returns.

Both companies' boards of directors have approved the deal. Stryker did not say when they expect the deal to close.

In October, Stryker said its third-quarter profit grew 47% on an increase in sales of orthopedic implants and its MedSurg equipment as well as improved margins.

Shares of Stryker closed at $51.53 and were inactive after hours. The stock has risen 2.3% this year.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; [e-mail]