Steris acquires Synergy Health, a UK-based outsourcing company focused on sterilization, for &1.9 billion USD.
Steris offered to acquire Synergy Health for $1.9 billion in cash and stocks. Steris, a company specializing in infection prevention, contamination control, surgical, and critical care technology, will benefit from the UK-based Synergy Health, specializing in outsourced sterilization services. In fiscal 2014, Synergy generated approximately $604 million in revenue and approximately $161 million in adjusted earnings before EBITDA.
Upon closing, expected in March 2015 according to a press release, the combined business will have approximately $2.6 billion in annual revenue. The acquisition will save the new company approximately $30 million annually in pre-tax cost savings due to a lowered tax rate. Similar to many mergers and acquisitions in the past year that have been dependent upon tax inversion, Steris will see a lowered tax rate of 25%, as opposed to the US corporate income tax rate of 35%, when combined with the UK company.