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Monday, October 13, 2014

Steris Corp to purchase Britain's Synergy Health for $1.9 bln, (NYSE: STE)

Medical Technology provider Steris Corp said it offered to purchase British sterilisation services provider Synergy Health for about $1.9 billion in cash and stock to expand its footprint in Europe. Steris said it would set up a new company to undertake the acquisition. It offered to pay Synergy Health shareholders 439 pence per share in cash and 0.4308 shares in the new company.Synergy shareholders are expected to hold 30 percent stake in the new company, while Steris stockholders will hold the remaining 70 percent.The new company is expected to have a combined revenue of about $2.6 billion and employ about 14,000 people in 60 countries, the two companies said.

Shares of STE fell by 1.95% or $-1.12/share to $56.38. In the past year, the shares have traded as low as $39.90 and as high as $58.15. On average, 291400 shares of STE exchange hands on a given day and today's volume is recorded at 648535.