STERIS expands its surgical product footprint through a $2.1 billion acquisition of Xodus Medical, targeting $135 million in adjusted EBIT and leveraging $300 million in net present value tax benefits.
STERIS is strategically expanding its surgical portfolio through the $2.1 billion acquisition of Xodus Medical. The deal is financially bolstered by an estimated $300 million in net present value from cash tax benefits, effectively lowering the net purchase price to $1.8 billion while adding $245 million in projected annual revenue by 2026.
The net purchase price is approximately $1.8 billion, after accounting for $300 million in net present value from cash tax benefits.
Yes, there is a potential earnout consideration of up to $150 million contingent on meeting specific performance targets in calendar 2028.
Xodus Medical is being acquired by STERIS in a transaction valued at $2.1 billion, reflecting its strong position in the specialty surgical products market. The deal provides a significant exit for shareholders, with further upside potential linked to performance-based earnouts through 2028.
Xodus Medical is a Pennsylvania-based specialty surgical products business.
The earnout consideration is based on performance targets achieved in calendar year 2028.
STERIS plc has entered a definitive agreement to acquire specialty surgical products firm Xodus Medical for $2.1 billion. The transaction, which includes a potential $150 million earnout, is expected to bolster STERIS's healthcare consumables segment with projected annual revenue of $245 million by 2026.
The acquisition allows STERIS to expand its healthcare consumables offering by integrating Xodus Medical's specialty surgical products business into its existing portfolio.
The $300 million in net present value from cash tax benefits effectively reduces the net purchase price of the transaction from $2.1 billion to approximately $1.8 billion.