Stryker Corp. (NYSE: SYK), a maker of medical devices, has agreed to buy Sage Products LLC for $2.78 billion in cash from its private equity owner Madison Dearborn Partners.

The purchase will come with a $500 million tax benefit for Kalamazoo, Michigan-based Stryker, the company said in a statement on Monday. Sage, based in Cary, Illinois, makes products for surgery and medical care.

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