Steris to close $2B Synergy Health buyout next week

Steris (NYSE:STE) said today that it expects to close the $2 billion merger with the U.K.’s Synergy Health next week, reporting fiscal 2nd-quarter numbers that beat expectations on Wall Street despite a -72% bottom-line plunge.

Last month a federal judge today shot down the U.S. Federal Trade Commission’s bid to block the pending, $1.9 billion merger. Today Steris said it expects to put a bow on the deal Nov. 2.

Mentor, Ohio-based Steris posted profits of $8.7 million, or 14¢ per share, on sales of $489.9 million for the 3 months ended Sept. 30, representing a -72.0% profit slide on sales growth of 5.9% compared with Q2 2014. Adjusted to exclude 1-time items, including a pension settlement and expenses from the acquisition, earnings per share were 83¢, 6¢ ahead of expectations on Wall Street, where analysts were looking for sales of $488.7 million.

“Steris is in a good position heading into our 2nd half, with solid top- and bottom-line growth,” president & CEO Walt Rosebrough said in prepared remarks. “We are very pleased to be days away from closing the Synergy Health acquisition. We are excited about the future, as the combined company will bring together the many strengths of both businesses, which will allow us to accomplish more than either one of us could separately.”

Steris affirmed its outlook for stand-alone adjusted EPS of $3.15 to $3.30 on stand-alone sales growth of 6% to 7% for fiscal 2016. The company said it plans to update its guidance “as soon as practical” after the Synergy merger’s close.

STE shares were up 5.5% to $73.87 apiece today in mid-day trading.

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