By TRACEY DRURY
tdrury@bizjournals.com | 716-541-1609

An acquisition by a nearly $7 billion medical device giant will help both employees and vendors of Orchard Park's Gaymar Industries.

So says Kent Davies, CEO, who spoke to Business First hours after the announcement.

Gaymar announced Aug. 25 it accepted a $150 million offer to become part of Stryker Corp. (NYSE: SYK) of Kalamazoo, Mich.

The deal, expected to close by Oct. 1, will mean positive outcomes not only for employees, who will have more opportunities within a larger company, but local vendors that already have a relationship with the local medical products firm.

"We've been working with them for 10 years. It's always a subject to talk about, how things can get better and where we can take the relationship," Davies says. "From those conversations, this idea emerged."

Though it's too soon to know all the details, the initial plan calls for keeping operations status quo, with Gaymar continuing manufacturing at its Centre Drive facility. It makes such items as support surface and pressure ulcer management products for health-care customers. Davies says the company does not anticipate any significant changes in operations or for the location, at least in the near term.

Founded in 1956, Gaymar was acquired in 2003 by private equity firms Nautic Partners and Norwest Equity Partners. Sales last year were about $77 million, of which approximately $14 million was related to the existing OEM relationship with Stryker. Stryker had worldwide sales of $6.7 billion last year.

Stryker's medical division has sold Gaymar's products for the last decade through an original equipment manufacturer agreement.

Aside from their differences in revenue, Davies says the two companies share many qualities. Both are founder-driven organizations with similar cultures. And the medical divisions at both serve a similar customer base.

Davies says he plans to remain as CEO of the Gaymar division as long as he is needed. He says for the company's 350-person workforce, including 170 who work in Orchard Park, the possibilities are endless.

"I've been very impressed in visiting with Stryker over the course of my tenure at Gaymar and how many of their people have had an opportunity to work in different parts of their organization in different jobs," he says. "As a somewhat smaller organization, at Gaymar those opportunities are somewhat more limited. For those people who perform, this opens a world of opportunity."

This spring, Gaymar shut down its facility in Kitchener, Ont., shifting manufacturing and distribution to its Orchard Park site. Today, the company has 350 employees, including 170 here, 135 at its facility in Puerto Rico and field reps nationwide. Employees companywide are optimistic about becoming part of Stryker, according to Davies.

"They know Stryker well. They're optimistic about the opportunities this will bring to them and think they understand the opportunity and complementary nature of the combination," he says.