Evoqua Water To Acquire Steris' Renal Business For $196.3M

Evoqua Water Technologies Corp AQUA has agreed to acquire the assets of the renal business of Steris PLC STE for $196.3 million.
The acquired renal business, historically operated by Steris' subsidiaries Mar Cor Purification and Cantel Medical, will strengthen Evoqua's medical water purification systems and aftermarket services offerings.
The acquired business is based in Plymouth, Minnesota, with 27 service and regeneration facilities in the U.S. and Canada. The business is expected to generate annualized revenues of ~$180 million and adjusted EBITDA of ~$27 million before synergies.
Evoqua Water intends to fund the deal through a combination of cash and proceeds from the revolving credit facility. It held cash and equivalents of $146.24 million as of September 30, 2021.
Evoqua Water expects to close the transaction during Q2 of FY22 ending March 31, 2022.
The business will be part of Evoqua's Integrated Solutions and Services segment upon closing the transaction.
Price Action: AQUA shares are trading lower by 3.29% at $42.89 and STE lower by 2.90% at $225.80 on the last check Monday.