Rachel Klemovitch, Assistant Editor04.11.24
STERIS entered a definitive agreement to divest its Dental segment to Peak Rock Capital, a leading middle-market private investment firm, for $787.5 million. This transaction is also subject to customary closing conditions, including regulatory review, and is anticipated to close in the first quarter of the 2025 fiscal year.
STERIS might receive an additional earn out of up to $12.5 million, subject to revenue targets of the Dental segment in fiscal 2025. The company intends to use the proceeds primarily to repay debt.
“Since acquiring our Dental segment through the Cantel acquisition, we have focused on deploying lean manufacturing methods to drive operating efficiencies. We have been impressed with the strength of the team, their willingness to adopt lean philosophies, and the leadership position the business has with Customers,” said STERIS president and CEO, Dan Carestio.
“After a thorough review of strategic alternatives, we have decided to divest our Dental segment to allow us to focus on our customers within our core markets in healthcare, pharma and medtech who can most benefit from our full portfolio of products and services. We are confident this business will do well with the investment and support of Peak Rock Capital,” Carestio concluded.
The Dental segment will be reported as discontinued operations for the fourth quarter and full year of fiscal 2024. The Company will provide an outlook for fiscal 2025 reflecting this transaction when fourth quarter fiscal 2024 results are issued.
STERIS might receive an additional earn out of up to $12.5 million, subject to revenue targets of the Dental segment in fiscal 2025. The company intends to use the proceeds primarily to repay debt.
“Since acquiring our Dental segment through the Cantel acquisition, we have focused on deploying lean manufacturing methods to drive operating efficiencies. We have been impressed with the strength of the team, their willingness to adopt lean philosophies, and the leadership position the business has with Customers,” said STERIS president and CEO, Dan Carestio.
“After a thorough review of strategic alternatives, we have decided to divest our Dental segment to allow us to focus on our customers within our core markets in healthcare, pharma and medtech who can most benefit from our full portfolio of products and services. We are confident this business will do well with the investment and support of Peak Rock Capital,” Carestio concluded.
The Dental segment will be reported as discontinued operations for the fourth quarter and full year of fiscal 2024. The Company will provide an outlook for fiscal 2025 reflecting this transaction when fourth quarter fiscal 2024 results are issued.