STERIS to Sell Dental Segment to an affiliate of Peak Rock Capital

• Transaction expected to close in STERIS’s first quarter of fiscal 2025
• Divestiture allows STERIS to focus on Customers within core markets
• Proceeds primarily to be used to repay debt
  

DUBLIN, IRELAND, April 11, 2024 (GLOBE NEWSWIRE) -- ) - STERIS plc (NYSE: STE) (“STERIS” or the “Company”) today announced that the Company has entered into a definitive agreement to divest its Dental segment to Peak Rock Capital, a leading middle-market private investment firm, for $787.5 million (the “Transaction”). The Transaction is structured as an equity sale. The Transaction terms also include the opportunity for STERIS to receive an additional earnout of up to $12.5 million, subject to the achievement of certain revenue targets of the Dental segment in fiscal 2025. The Dental segment reported revenue of $407 million and contributed segment operating income of $86 million in the trailing twelve-month period ended December 31, 2023.

“Since acquiring our Dental segment through the Cantel acquisition, we have focused on deploying lean manufacturing methods to drive operating efficiencies. We have been impressed with the strength of the team, their willingness to adopt lean philosophies, and the leadership position the business has with Customers,” said Dan Carestio, President and Chief Executive Officer of STERIS. “After a thorough review of strategic alternatives, we have decided to divest our Dental segment to allow us to focus on our Customers within our core markets in healthcare, pharma and MedTech who can most benefit from our full portfolio of products and services. We are confident this business will do well with the investment and support of Peak Rock Capital.”

The Transaction is subject to customary closing conditions, including regulatory review, and is anticipated to close in the first quarter of fiscal year 2025. STERIS intends to use the proceeds primarily to repay debt. On a full year run rate basis, STERIS expects the resulting benefit of the reduction in interest expense to be approximately $0.35 per diluted share.

The Dental segment will be reported as discontinued operations for the fourth quarter and full year of fiscal 2024. The Company will provide outlook for fiscal 2025 reflecting this Transaction when fourth quarter fiscal 2024 results are issued.

Advisors
Guggenheim Securities is serving as financial advisor and Jones Day as legal counsel to STERIS for the Transaction.

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