Steris cleans up with $4.6bn deal for Cantel

Snippets

In the midst of a pandemic that has seen surgery-focused medtech companies suffer, Steris is continuing to expand its offering with a multi-billion bet on the US company Cantel, its largest acquisition to date. A large proportion of Steris’s business is based on operating room equipment and sterilisation, an area that has been hit hard by the scaling back of elective surgery during the pandemic. What Cantel offers is not only a complementary endoscopy business through disposables, but a new dental revenue stream. Most dentists are still operating, and this is an area in which Covid has increased the focus on infection control and sterilisation. The dental business also brings with it personal protective equipment in the form of face masks, protective bibs and disinfectant products, a valuable capability given that the need for PPE is set to continue for the foreseeable future. The purchase also has echoes of Steris's $850m buyout of Key Surgical in October, another transaction that gave it protective equipment and was funded through a mix of cash and shares. While this might not be the most exciting of deals it clearly shows the strategic direction in which Steris is heading.

Steris's five biggest acquisitions
Date Target Value ($m) Focus
Jan 2021 Cantel Medical 4,600 Endoscopy; general & plastic surgery; nephrology
Nov 2015 Synergy Health 1,900 Endoscopy; general hospital & healthcare supply
Nov 2020 Key Surgical 850 General hospital & healthcare supply
May 1996 Amsco International 660 General & plastic surgery; general hospital & healthcare supply
Aug 2012 United States Endoscopy Group 270 Ear, nose & throat; endoscopy
Source: EvaluateMedTech & company releases. 

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