Steris closes $2B Synergy Health merger

As expected, Steris (NYSE:STE) said today that it closed a $2 billion merger with the U.K.’s Synergy Health, after the U.S. Federal Trade Commission last week abandoned its bid to block the union.

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 the Mentor, Ohio-based company said the FTC decided Oct. 30 “to not pursue further administrative proceedings challenging the combination between Steris Corp. and Synergy, and the FTC has formally dismissed the administrative complaint.”

Shares of the new Steris are due to begin trading under its STE symbol on the New York Stock Exchange tomorrow, the company said.

“This combination marks a significant milestone for STERIS, creating a stronger global leader in infection prevention and sterilization, better-positioned to provide comprehensive solutions to medical device companies, pharmaceutical companies, hospitals and other healthcare facilities around the world,” president & CEO Walt Rosebrough said in prepared remarks.

Steris last week 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.

The company 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 down -1.1% to $74.10 apiece today in mid-afternoon trading.

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