Deal value: $850 million
Announced: October 6, 2020
Closed: November 18, 2020
Key Surgical provides sterile processing, surgical instruments and endoscopy products for a wide range of hospital and care center procedures globally—and Steris wants the company to supply a steady stream of new products for its core customers.
The Minnesota-based portfolio company of Water Street Healthcare Partners is expected to bring in at least $170 million in 2020 revenue and add about $55 million to Steris’ bottom line in the fourth fiscal quarter as Steris complements and scales up its own offerings in decontamination and sterilization hardware.
And while this $850 million deal comes in fifth on our 2020 list, it’s already been overshadowed by Steris’ most recent $4.6 billion offer for Cantel Medical, makers of infection prevention gear and protective equipment.
Cantel brought in about $1 billion in revenue over its 2020 fiscal year through disposables for endoscopy procedures, plus scope reprocessing systems, disinfectants and detergents. It also offers face masks, wipes, towels and bibs for dentists and water purification systems for dialysis providers.
Steris hopes both acquisitions will serve it well as it faces COVID-19, as well as in a post-pandemic world. Both Cantel and Key offer infection prevention gear such as masks, caps, gowns and gloves for endoscopic and surgical procedures.
Meanwhile, Steris itself provides systems for decontaminating N95 respirators. Those systems have received FDA emergency authorizations, allowing the masks to be reused when in short supply.
During the earliest stages of the pandemic, the agency allowed masks to be processed with hydrogen peroxide vapor and reworn up to 10 times. More recently, the FDA rolled back those authorizations and limited all N95 mask reuse to four decontamination cycles.