IMPREGNATED CLOTHS Sage 2% Chlorhexidine Gluconate (CHG) Cloths.

Stryker yesterday announced a definitive agreement to acquire Sage Products in an all-cash transaction for $2.775 billion. Sage makes disposable products that help prevent infections and hospital-acquired conditions. Its leading products are pre-operative kits that prevent surgical site infections, including 2% CHG impregnated cloths, as well as turning and positioning devices designed to prevent sacral pressure ulcers and heel care boots.

Analysts say the move demonstrates that reducing hospital-acquired infections has become a top priority for med-tech players, due in large part to federal government incentives. The Affordable Care Act mandates a 1% Medicare payment reduction for hospitals that have too many hospital-acquired infections and readmissions.

"This acquisition aligns with Stryker's focus on offering products and services that support a mindset of prevention, specifically in the area of "Never Events" such as hospital acquired infections," says Kevin A. Lobo, Stryker's Chairman and Chief Executive Officer.

Sage, a 45-year-old company with more than 800 employees, will continue to operate under that brand as part of Stryker's medical division, the companies announced.

Dan O'Connor