Medical equipment company Steris plc said it has agreed to buy the surgical instrumentation, laparoscopic instrumentation and sterilization container assets of Becton, Dickinson and Co. for $540 million.
Dublin-based Steris, with U.S. operations headquartered in Mentor, Ohio, said in a news release that the deal is expected to close by Sept. 30, pending regulatory approval. The deal will be financed through a combination of debt and cash on hand, Steris said. The company expects the deal to be accretive to adjusted earnings per diluted share in fiscal year 2024
The acquisition includes V. Mueller, Snowden-Pencer and Genesis branded products, as well as three plants, in Cleveland, St. Louis and Tuttlingen, Germany. Steris said annual revenue for the businesses collectively is projected at $170 million for Becton Dickinson's fiscal year ending Sept. 30, with adjusted earnings before interest and taxes of about $45 million.
Dan Carestio, president and CEO of Steris, said in a statement that the brands being added "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."
Steris also expects to qualify for a tax benefit related to tax-deductible goodwill with a present value of about $60 million, according to the release.
Becton Dickinson, based in Franklin Lakes, N.J., said in its own release that the divestiture is part of a push to simplify its product portfolio and manufacturing network, and is a critical part of its strategy going into 2025.
Becton Dickinson said it expects "approximately 360 employees who maintain and support the platform" will transfer over to Steris.
"This strong value-creating transaction supports the achievement of BD's 2025 financial goals, including revenue growth and margin expansion," the company said.
Steris has global sales of about $5 billion and more than 17,000 employees. Its operations include injection molding.