Ohio's Steris ($STE) is looking to expand its presence in the gastrointestinal device market, snapping up privately held U.S. Endoscopy for $270 million in cash.
Steris expects the deal to close by the second quarter of 2013, and adding U.S. Endoscopy's capabilities in manufacturing and designing GI devices will bolster the company's bottom line, Steris CEO Walt Rosebrough said. "They have generated double-digit organic growth for many years through successful new product development, and the acquisition provides Steris immediate scale with a direct sales force in the U. S. and a strong brand name," he said in a statement.
U.S. Endoscopy, also based in Ohio, doesn't actually make endoscopes. Instead, the company designs and manufacturers techs attached to the end of invasive devices, including retrievers, grasping devices and suction tubes. In 2011, the company generated $70 million in revenue and $14 million in income, Steris said, and U.S. Endoscopy has grown its revenues by 15% compounded over the past 5 years.
Steris has long specialized in hospital-use devices but has never had a presence in the gastrointestinal market. This $270 million acquisition will change all that, the company said, giving Steris an entry into the multi-billion-dollar global GI business.
U.S. Endoscopy has about 400 employees, mostly based in Ohio, and the company's shareholders picked Steris over other suitors in part because they wanted to keep those jobs in the state, Crain's Cleveland Business notes.
- read Steris' release
- get more from Crain's