Steris Agrees to Buy Cantel Medical for About $3.6 Billion

Steris Plc, a maker of sterilization products and services, agreed to buy smaller rival Cantel Medical Corp. for about $3.6 billion, as the wave of health-care acquisitions continues into 2021.

Cantel shareholders will get about $16.93 in cash and 0.33787 of a Steris share, or a total of about $84.66 per Cantel share based on Steris’s closing share price of $200.46 on Monday. The buyer is paying no premium.

Including debt, the deal is valued at $4.6 billion, according to a statement Tuesday. Steris plans to fund the takeover and repay part of Cantel’s debt with $2 billion in new borrowings.

Steris sells products and services to sterilize surgical instruments and operating rooms as well as research labs. Little Falls, New Jersey-based Cantel serves a similar market, with disinfectants and detergents for endoscopy procedures, single-used products for dentists and water purification systems for dialysis facilities.

Health-care companies have already unveiled several acquisitions in 2021 after announcing $362.7 billion of deals last year. In December, AstraZeneca Plc agreed to acquire rare-disease specialist Alexion Pharmaceuticals Inc. for $39 billion in the industry’s biggest transaction of 2020.

Last week, Centene Corp. agreed to buy Magellan Health Inc. in a transaction valuing the manager of behavioral health services at $2.2 billion.

Steris is legally based in Dublin, though its operational headquarters is in Mentor, Ohio.

©2021 Bloomberg L.P.

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