* Deal to expand Steris's presence in gastrointestinal
* 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 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