Steris to sell Dental segment to Peak Rock Capital for $787.5M

Steris announced that the company has entered into a definitive agreement to divest its Dental segment to Peak Rock Capital, a leading middle-market private investment firm, for $787.5M. The Transaction is structured as an equity sale. The Transaction terms also include the opportunity for Steris to receive an additional earnout of up to $12.5M, subject to the achievement of certain revenue targets of the Dental segment in fiscal 2025. The Dental segment reported revenue of $407 million and contributed segment operating income of $86M in the trailing twelve-month period ended December 31, 2023. The Transaction is subject to customary closing conditions, including regulatory review, and is anticipated to close in the first quarter of fiscal year 2025. STERIS intends to use the proceeds primarily to repay debt. On a full year run rate basis, Steris expects the resulting benefit of the reduction in interest expense to be approximately 35c per diluted share. The Dental segment will be reported as discontinued operations for the fourth quarter and full year of fiscal 2024. The company will provide outlook for fiscal 2025 reflecting this Transaction when fourth quarter fiscal 2024 results are issued.