Steris acquires businesses, expands healthcare service business
Steris, an infection prevention, decontamination, surgical and critical care company based in Mentor, Ohio, purchased two privately-owned businesses: Spectrum Surgical Instruments of Stow, Ohio, and Total Repair Express (TRE) of Hillsborough, N.J.—both providers of surgical instrument repair services and instrument care products to hospitals and surgery centers in the U.S.
Steris acquired Spectrum and TRE for approximately $110 million, including contingent consideration. In calendar 2012, the combined businesses are anticipated to generate revenue of approximately $72 million and operating income of approximately $7 million.
The two businesses will be integrated into Steris' healthcare segment as part of the company's specialty services business, which provides a variety of niche services to customers, including space decontamination solutions, chamber cleanings and instrument repairs.
"As we continue to expand our customer solutions, entering the surgical instrument repair business through these acquisitions will enhance our existing presence in hospital sterile processing and surgical departments," said Walt Rosebrough, president and CEO of Steris. "These bolt-on acquisitions will give Steris one of the largest surgical instrument repair businesses in the U.S., and we are excited about the opportunity to leverage our existing customer relationships to grow these businesses throughout the country."
The two companies’ core businesses are the repair of a wide variety of surgical instruments and other hospital equipment both on-site at hospital premises and at central repair facilities. The primary services offered include inspection, cleaning, lubrication and repair of reusable surgical instruments such as forceps, retractors and scissors. Typical contracts involve regular servicing of instruments in the surgical suite of hospitals, and may involve daily or weekly interaction with hospital sterile processing center personnel at client facilities. By contrast, Steris' current service business is primarily focused on the installation, maintenance and repair of the company's capital equipment in healthcare facilities.