STERIS Expands Healthcare Products Offering with Acquisition of Surgical Instrumentation Assets from Becton, Dickinson and Company for $540 million

• A natural extension for STERIS in the operating room and sterile processing department
  
• A primarily consumables product portfolio
• Transaction expected to close by September 30, 2023
  
  

DUBLIN, IRELAND , June 20, 2023 (GLOBE NEWSWIRE) -- STERIS plc (NYSE: STE) (“STERIS” or the “Company”) today announced that the Company has signed a definitive agreement to purchase the surgical instrumentation, laparoscopic instrumentation and sterilization container assets from Becton, Dickinson and Company (NYSE:BDX) (“BD”) for $540 million (“the Transaction”). STERIS anticipates that the acquisition will qualify for a tax benefit related to tax deductible goodwill, with a present value of approximately $60 million.  The acquisition includes V. Mueller^TM, Snowden-Pencer^TM and Genesis^TM branded products, which are well-known providers of surgical instruments and sterilization containers to Healthcare Customers. Annual revenue for these businesses collectively for BD’s fiscal year ended September 30, 2023, is projected to be approximately $170 million, with adjusted earnings before interest and taxes of approximately $45 million.

“We are pleased to announce the signing of this agreement today, as the brands we are adding will strengthen, complement and expand STERIS’s product offerings within our Healthcare segment. In particular, the focus on the operating room and sterile processing department fits perfectly with our Healthcare Customers,” said Dan Carestio, President and Chief Executive Officer of STERIS. “We welcome these teams to STERIS and look forward to working together to enhance our value to our Customers.”

Under the terms of the agreement, STERIS will purchase surgical instrumentation, laparoscopic instrumentation and sterilization containers assets from BD at closing. The Transaction will be financed through a combination of debt and cash on hand and is anticipated to close by September 30, 2023, pending customary closing conditions and regulatory approval. Management will update the fiscal year 2024 outlook to reflect this Transaction after closing. It is expected to be accretive to adjusted earnings per diluted share in fiscal year 2024.