Kalamazoo, Michigan - March 1, 2013 - Stryker Corporation (NYSE:SYK) announced today it has entered into an Accelerated Share Repurchase agreement (ASR) with JPMorgan Chase Bank, NA to repurchase an aggregate of $250 million of the Company's common stock. The ASR is part of the Company's existing share repurchase authorization that was increased by the Board of Directors to $1.0 billion in December 2012.
"We continue to be committed to a capital allocation strategy that includes acquisitions, dividends and share repurchases," said Kevin A. Lobo, President and Chief Executive Officer of Stryker. "This accelerated share repurchase is consistent with this strategy, which prioritizes acquisitions for sales growth while simultaneously returning capital to shareholders."
Under the ASR agreement, Stryker will receive approximately 3.6 million shares at the inception of the ASR. The total number of shares ultimately repurchased under the agreement will be determined upon the final settlement, using prices based generally on the average of the daily volume-weighted average price of the Company's common stock over a period of time expected to end in the first half of 2013. The ASR will be funded through existing cash on hand. The ASR will reduce the Company's existing share repurchase authorization to approximately $750 million at the final settlement of the agreement.
Stryker is one of the world's leading medical technology companies and is dedicated to helping healthcare professionals perform their jobs more efficiently while enhancing patient care. The Company offers a diverse array of innovative medical technologies, including reconstructive, medical and surgical, and neurotechnology and spine products to help people lead more active and more satisfying lives. For more information about Stryker, please visit www.stryker.com.
Contacts
For investor inquiries please contact:
Katherine A. Owen, Stryker Corporation, 269-385-2600 or katherine.owen@stryker.com
This press release contains information that includes or is based on forward-looking statements within the meaning of the federal securities law that are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening of economic conditions that could adversely affect the level of demand for our products; pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for our products; changes in foreign exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect U.S. Food and Drug Administration approval of new products; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; the ultimate total cost with respect to the Rejuvenate and ABG II matter; the impact of investigative and legal proceedings and compliance risks; resolution of tax audits; the impact of the federal legislation to reform the United States healthcare system and the 2.3 percent medical device excise tax; changes in financial markets; changes in the competitive environment; our ability to integrate acquisitions, including the acquisition of Trauson Holdings Company Limited; and our ability to realize anticipated cost savings as a result of workforce reductions and other restructuring activities. Additional information concerning these and other factors are contained in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
HUG#1682370