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MENTOR, Ohio (AP) — Steris will spend $270 million to acquire the United States Endoscopy Group.
The company sells devices and accessories used in gastrointestinal and urology procedures, and Steris said the deal gives it a franchise of disposable gastrointestinal products. Steris is a sterilization device maker. It said U.S. Endoscopy Group had about $70 million in revenue in 2011 and its revenue has grown about 15 percent annually over the last five years.
The acquisition will cut profit this year by about 5 cents per share. Steris' fiscal year ends March 31. However the company is not changing its annual forecast of $2 to $2.20 per share in net income. It said the deal will add to its profit in fiscal 2014.
The acquisition is expected to close during the fiscal second quarter, which ends Sept. 30.
Shares of Steris Corp. lost 22 cents to $31.38 in morning trading.