UPDATE 1-Steris to buy US Endoscopy for $270 mln

Tue Jul 17, 2012 6:24pm IST

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* Deal to expand Steris's presence in gastrointestinal market

* Deal to hurt Steris's earnings by $0.05/shr in fiscal 2013

* Deal to add to Steris's earnings in fiscal 2014

July 17 (Reuters) - Medical device maker Steris Corp will buy privately held diagnostics company U.S. Endoscopy Group Inc for $270 million in cash to expand its operations in the gastrointestinal endoscopy market.

The deal is expected to reduce Steris' fiscal 2013 earnings by about 5 cents a share, but will add to earnings from 2014.

The company kept its 2013 earnings forecast of between $2.00 and $2.20 per share.

Steris, which provides infection prevention and surgical products and services, said it will finance the deal through cash and borrowings.

U.S. Endoscopy makes endoscopy devices and had 2011 revenue of about $70 million.

The deal, which is expected to close by the second quarter of 2013, comes a day after laboratory equipment maker Thermo Fisher Scientific Inc said it would buy transplant diagnostics firm One Lambda.

Steris will also buy certain land and buildings from US Endoscopy for about $7 million.

Lazard was the financial adviser to Steris, while Cohen & Co advised US Endoscopy.

Steris shares closed at $31.60 on Monday on the New York Stock Exchange.

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