STERIS Enters Definitive Deal To Divest Its Dental Segment To Peak Rock Capital For $787.5M
Portfolio Pulse from Benzinga Newsdesk
STERIS has agreed to sell its Dental segment to Peak Rock Capital for $787.5 million, with a potential additional earnout of $12.5 million based on fiscal 2025 revenue targets. The Dental segment's recent performance included $407 million in revenue and $86 million in operating income. The sale is expected to close in Q1 of fiscal year 2025, and STERIS plans to use the proceeds to repay debt, anticipating a $0.35 per diluted share benefit from reduced interest expenses.
April 11, 2024 | 10:59 am
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STERIS is divesting its Dental segment to Peak Rock Capital for $787.5M, potentially rising to $800M with earnouts. The deal, closing in Q1 FY2025, is expected to reduce debt and improve earnings per share by $0.35.
The divestiture of the Dental segment by STERIS to Peak Rock Capital for a substantial sum indicates a strategic move to streamline operations and focus on core areas. The anticipated use of proceeds to repay debt is financially prudent and is expected to enhance shareholder value through improved financial health and reduced interest expenses. The expected benefit of $0.35 per diluted share from the reduction in interest expense suggests a positive impact on earnings, making this news highly relevant and important to investors in STERIS. The confidence in this analysis is high due to the clear financial details provided and the strategic nature of the divestiture.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100