Steris PLC to acquire Key Surgical for $850 million

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Steris PLC said Tuesday it has agreed to acquire Key Surgical, a portfolio company of Water Street Healthcare Partners LLC for $850 million. Dublin, Ireland-based Steris expects the deal to qualify for a tax benefit that will reduce the purchase price to $810 million. Key Surgical was founded in 1988 and provides consumable products to hospitals and surgical facilities, generating about $170 million in revenue in calendar 2020. “Key Surgical strengthens, complements and expands STERIS’s product offering and reach around the globe. Their focus on the sterile processing department, operating room and endoscopy fits perfectly with our core Healthcare Customers,” Steris Chief Executive Walt Rosebrough said in a statement. The deal is expected to close in the fourth quarter of fiscal 2021 and to add about $40 million to revenue and 10 cents in adjusted per-share earnings. The deal will be financed with a combination of debt and cash on hand. Steris shares were not yet active premarket, but have added 15% in the year to date, while the S&P 500 has gained 5.5%.
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