Steris
(NYSE:STE) announced this week that it has closed on its $850 million purchase of Key Surgical, a manufacturer of disposable hospital and surgical products.
Mentor, Ohio-based Steris now anticipates that Key Surgical will add about 35% more revenue and adjusted earnings per diluted share in the fiscal year than initially anticipated with a December 31, 2020 close. As a result, the company now expects approximately $55 million in revenue and $0.13 in adjusted earnings per diluted share in fiscal 2021 from the Key Surgical acquisition, assuming no major disruptions due to COVID-19.
Key Surgical was a portfolio company of Chicago-based Water Street Healthcare Partners and is located in Eden Prairie, Minn., about 20 miles from Steris’ U.S. laboratory. Founded in 1988, Key Surgical’s disposable product portfolio is a natural extension for Steris’ customers in sterile processing departments, operating rooms and endoscopy, Steris said when announcing the purchase in October.
“We are pleased to announce the timely closing of the Key Surgical acquisition, which strengthens, complements and expands Steris’ product offering and global reach,” Steris president & CEO Walt Rosebrough said in a news release. “We welcome Key Surgical people to the Steris team, and look forward to working together to provide enhanced service to our customers and create additional value for our shareholders.”
