Madison Dearborn to sell Sage Products for $2.775 bln

Stryker Corp has agreed to buy Sage Products, a portfolio company of Madison Dearborn Partners, for $2.775 billion. Cary, Illinois-based Sage develops products used to prevent hospital-acquired conditions. Barclays advised Sage with Kirkland & Ellis LLP and Madden, Jiganti, Moore & Sinars LLP providing the company with legal counsel. JP Morgan is serving as Stryker’s exclusive financial advisor while Sullivan & Cromwell LLP was their lawyer.


CARY, Ill., February 1, 2016 – Sage Products LLC (Sage), a leading developer of innovative products used
to prevent hospital-acquired conditions, today announced that it has signed a definitive agreement by
which it will be acquired by Stryker Corporation (NYSE: SYK) (Stryker) from Madison Dearborn Partners
(MDP) in an all cash transaction for $2.775 billion. Stryker, headquartered in Kalamazoo, Michigan, and
operating in over 100 countries, is one of the world’s leading medical technology companies and offers a
diverse array of innovative products and services in Orthopedics, Medical and Surgical, and
Neurotechnology and Spine. Chicago-based MDP acquired a majority ownership position in Sage in
December 2012.

As part of a publicly traded company with global reach, diverse product lines and a shared commitment
to improving patient care and outcomes, Sage will be strongly positioned to achieve continued growth,
create more opportunities for its employees and continue its commitment to active community
engagement. Sage plans to continue to operate under its existing brand name as part of Stryker’s
Medical division. Sage’s current executive committee, led by President and CEO Scott Brown and
Chairman of the Board Vincent Foglia, will remain in place and continue leading Sage from its
headquarters in Cary, Illinois.

“Over our 45 years, we have achieved incredible growth through our focus on innovation, our Sage
culture and our deep commitment to our community,” said Scott Brown, President and CEO of Sage
Products. “With MDP’s support, our business has grown domestically and we have achieved significant
initial success with our international expansion. We are grateful for MDP’s partnership over the past few
years and believe that Sage is well-positioned for continued achievement and long-term success with
Stryker, a company that understands our business, supports our goals and embraces our values.”

“We warmly welcome Vince, Scott, the exceptional leadership team and all Sage employees to the
global Stryker family,” said Kevin A. Lobo, Chairman and Chief Executive Officer of Stryker Corporation.
“We are fully aligned with Sage’s strategy and culture, and we see this acquisition as a very strong
addition to our existing product portfolio. Stryker looks forward to helping Sage continue its impressive
growth trajectory around the world while remaining true to its roots and local community engagement.”

The closing of the transaction is subject to expiration or termination of the applicable waiting period
under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. The
transaction is expected to close in the second quarter of 2016.

Barclays is serving as Sage’s exclusive financial advisor with Kirkland & Ellis LLP and Madden, Jiganti,
Moore & Sinars LLP providing the company with legal counsel. JP Morgan is serving as Stryker’s exclusive
financial advisor and Sullivan & Cromwell LLP is serving as outside legal counsel for Stryker in connection
with this transaction.

About Sage Products LLC

For 45 years, Sage Products has successfully developed and produced proprietary solutions that have
significantly improved outcomes for patients and clinicians, while improving efficiency and profitability
for healthcare facilities. Sage is the leading developer of innovative products used to reduce the risk of
hospital-acquired conditions such as ventilator-associated conditions, skin ulcerations due to
incontinence, pressure ulcers, surgical site infections and healthcare worker injury. Headquartered in
Cary, Ill., Sage has more than 800 employees in the United States, Canada and Europe, and was named
five years in a row as one of the Best Medium-Sized Companies to Work For in America by Great Place to
Work. Throughout its history, Sage has demonstrated an ability to identify unmet medical needs and
develop intuitive solutions. It also has consistently created new markets and product categories in
patient infection control and preventative care. For more information, please visit

About Madison Dearborn Partners

Madison Dearborn Partners (MDP), based in Chicago, Illinois, is a leading private equity investment firm
in the United States. Since MDP’s formation in 1992, the firm has raised seven funds with aggregate
capital of over $21 billion and has completed approximately 130 investments. MDP invests in businesses
across a broad spectrum of industries, including health care; basic industries; business and government
services; consumer; financial and transaction services; and telecom, media and technology services. Its
health care investments include Ikaria, Kaufman Hall, Option Care, Patterson Medical, Sirona Dental,
Team Health and VWR International. For more information, please visit