Steris and Synergy Postpone Shareholder Vote on Merger to Respond to FTC Queries

Steris Corp. and Synergy Health plc have put the breaks—if only briefly—on their merger plans.

Steris has rescheduled a shareholder vote on the merger from March 12 to May 12.  Synergy Health also will reschedule its shareholder vote to the same date.  The move was made to respond to a request for more information on the deal from the U.S. Federal Trade Commission (FTC) in connection with the merger.

The merger was announced in October, and called for Mentor, Ohio-based Steris to buy United Kingdom-based sterilization services company Synergy Health plc for about $1.9 billion.

Steris makes infection prevention products and services. Its portfolio includes sterilizers, surgical tables, detergents and laboratory testing services. Synergy Health PLC provides sterilization services for medical device makers, hospitals and other customers.

Officials from the companies say both firms are cooperating with FTC staff. 

“Steris and Synergy Health remain committed to completing this value-enhancing transaction, and remain optimistic about its prospects,” said Walt Rosebrough, president and CEO of Steris.

“There remains a strong strategic rationale for the combination of Synergy with Steris and we are working toward achieving completion as soon as possible,” said Dr. Richard Steeves, CEO of Synergy Health.

The companies predict having provided the FTC with all the information it needs by April and expect to have more information about the status or completion of the agency’s review in May.

The deal had been expected to close by June, however, the antitrust process may “extend the transaction timing,” officials said. Steris and Synergy have agreed to extend the date for completion of the deal to July 12.

If the deal goes through, the new company will maintain operational headquarters in Ohio, but it will incorporate in the United Kingdom, where it will have a tax rate of about 25 percent starting in 2016.