STERIS plc acquired Key Surgical, LLC for $853.2 million net of cash acquired (announced at approximately $850 million; effectively about $810 million after the present value of an anticipated goodwill tax benefit), a transaction completed in November 2020, structured as all cash (funded with cash on hand, credit-facility borrowings and new long-term debt).
Key Surgical, LLC operates in Healthcare, is based in Eden Prairie, Minnesota, USA (global operations), had revenue of about approximately $170 million anticipated for calendar 2020, with adjusted EBIT of about $50 million. Key Surgical, founded in 1988 and a portfolio company of Water Street Healthcare Partners, is a global provider of consumable products for sterile processing departments, operating rooms and endoscopy suites serving hospitals and surgical facilities. STERIS bought all of its units and equity for about $850 million; Key Surgical's calendar-2020 revenue was expected to be roughly $170 million with adjusted EBIT of about $50 million.
Management said the consumables portfolio was a natural extension for STERIS customers in sterile processing, the operating room and endoscopy, and was accretive to top-line growth, margins and earnings.
A high-growth, high-margin recurring-consumables business directly adjacent to STERIS's sterile-processing and endoscopy customer base. accretive to top-line growth, margins and earnings; anticipated goodwill tax benefit reducing effective purchase price to about $810 million Integrated into the Healthcare segment
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.Walt Rosebrough, President and CEO, STERIS plc
Advisory firms were not disclosed for this transaction.