STERIS Corporation Announces Agreement to Acquire Integrated Medical Systems International, Inc.
STERIS Corporation announces a definitive agreement to acquire Integrated Medical Systems International, Inc. (IMS) for a purchase price of approximately $165 million, plus approximately $10 million for the purchase of real estate. IMS, a privately held business, is an endoscope repair, surgical instrument management and sterile processing consulting company. IMS revenue for the current calendar year is anticipated to be approximately $150 million.
Upon closing, IMS will be integrated into STERIS's healthcare segment as part of the company's Specialty Services business, which provides a variety of services to customers including surgical instrument repair and endoscope repair.
"A key element of our growth strategy has been to expand our specialty services business through a combination of organic growth and acquisition," says Walt Rosebrough, president and CEO of STERIS Corporation. "We are excited about this opportunity to build upon what we do best -- help our hospital customers improve processes, increase quality and save money."
The transaction is subject to customary closing conditions and regulatory approval, including the expiration or termination of the Hart-Scott-Rodino Antitrust Improvements Act waiting period, and is anticipated to close in the first quarter of fiscal 2015. STERIS will finance the acquisition through borrowings under its existing credit facility.
The surgical instrument repair, endoscope repair, and sterile process consulting business are fragmented with many local and regional competitors, as well as OEM manufacturers who operate nationwide. In addition, many hospitals currently perform certain of these services for themselves. The company believes that demand for these services in the U.S. is growing in the mid- to high-single digits annually.
STERIS anticipates that the acquisition will qualify for a joint election tax benefit under Section 338(h)(10) of the Internal Revenue Code, which allows goodwill and intangibles to be fully deductible for tax purposes. Adjusting for the present value of the anticipated tax benefits, the purchase price is effectively reduced to approximately $140 million. Excluding deal related expenses, amortization of intangibles and integration costs, the company anticipates that IMS would contribute approximately $15 million in operating income for a fiscal full year.
Lazard acted as financial advisor and Thompson Hine acted as legal advisor to STERIS in connection with the acquisition.
Source: STERIS Corporation
Getting Down and Dirty With PPE: Presentations at HSPA by Jill Holdsworth and Katie Belski
June 26th 2025In the heart of the hospital, decontamination technicians tackle one of health care’s dirtiest—and most vital—jobs. At HSPA 2025, 6 packed workshops led by experts Jill Holdsworth and Katie Belski spotlighted the crucial, often-overlooked art of PPE removal. The message was clear: proper doffing saves lives, starting with your own.
Unmasking Vaccine Myths: Dr Marschall Runge on Measles, Misinformation, and Public Health Solutions
May 29th 2025As measles cases climb across the US, discredited myths continue to undercut public trust in vaccines. In an exclusive interview with Infection Control Today, Michigan Medicine’s Marschall Runge, PhD, confronts misinformation head-on and explores how clinicians can counter it with science, empathy, and community engagement.
Silent Saboteurs: Managing Endotoxins for Sepsis-Free Sterilization
Invisible yet deadly, endotoxins evade traditional sterilization methods, posing significant risks during routine surgeries. Understanding and addressing their threat is critical for patient safety.
Endoscopes and Lumened Instruments: New Studies Highlight Persistent Contamination Risks
May 7th 2025Two new studies reveal troubling contamination in both new endoscopes and cleaned lumened surgical instruments, challenging the reliability of current reprocessing practices and manufacturer guidelines.
From the Derby to the Decontam Room: Leadership Lessons for Sterile Processing
April 27th 2025Elizabeth (Betty) Casey, MSN, RN, CNOR, CRCST, CHL, is the SVP of Operations and Chief Nursing Officer at Surgical Solutions in Overland, Kansas. This SPD leader reframes preparation, unpredictability, and teamwork by comparing surgical services to the Kentucky Derby to reenergize sterile processing professionals and inspire systemic change.
