STERIS Corporation
announced Tuesday it has signed a definitive agreement to
acquire certain assets of Cosmed Group, Inc., a privately-held contract
sterilization services provider with corporate offices in Jamestown.
The transaction is subject to closing
conditions, including regulatory review. Upon closing, the acquired business
will be integrated into STERIS’s Isomedix Services segment, which is a
provider of contract sterilization services to medical supply, consumer and
industrial customers.
Many products, such as single-use medical devices, require sterilization
before being delivered to customers. Contract sterilization facilities
process these items in bulk.
Isomedix currently operates 16 such
facilities in North America, offering a
variety of processing options including gamma irradiation, ethylene oxide, and
electron-beam processing.
STERIS has agreed to acquire all five of Cosmed’s medical device
sterilization locations for $73 million.
For the year ending December 31, 2003, Cosmed’s revenues
were $21 million for these locations. The transaction is expected to
contribute approximately $0.05 to STERIS’s diluted earnings per share in its
first full fiscal year after closing.
