STE · 10-Q · 2026Q3 · Full report

Acquisition / Partnership / Divestiture

STERIS plc · 2026-11-05 · Importance 71 · Surprise 60 · In source text

On October 11, 2026, STERIS entered into an agreement to acquire Xodus Medical for approximately $2.1 billion in cash at closing, subject to customary adjustments, plus potential earnout consideration of up to $150.0 million. The company expects the acquisition to close by December 31, 2026, subject to customary closing conditions and regulatory approvals. The filing identifies the three completed tuck-in acquisitions during the first six months of fiscal 2027 as expanding product and service offerings in Healthcare; it does not specify Xodus Medical’s segment allocation.

Key facts

• STERIS expects to fund the Xodus Medical Acquisition purchase price with approximately $2.0 billion of new debt, including approximately $500.0 million of borrowings under the Delayed Draw Term Loan, and cash on hand. source
• STERIS entered into an agreement on October 11, 2026, to acquire Xodus Medical for approximately $2.1 billion in cash at closing, subject to customary adjustments, plus potential earnout consideration of up to $150.0 million. source
• STERIS has $1.5 billion of committed bridge financing for the Xodus Medical Acquisition and anticipates replacing the commitments with permanent financing before closing. source
• The Xodus Medical Acquisition Purchase Agreement provides for potential earnout consideration of up to $150 million based on specified post-closing performance targets in calendar 2028. source
• STERIS expects to close the Xodus Medical acquisition by December 31, 2026, subject to customary closing conditions and regulatory approvals. source
• STERIS completed three tuck-in acquisitions during the first six months of fiscal 2027 for aggregate consideration of approximately $17.3 million, including deferred and potential contingent consideration. source
• STERIS identifies the risk that required regulatory approvals for the Xodus Medical Acquisition may not be received, may take longer than expected, or may impose adverse conditions, affecting the ability to complete the acquisition on its expected timeline or at all. source
• STERIS identifies the risk that expected cost savings, tax benefits, and other synergies from the Xodus Medical Acquisition may not be realized or may take longer than expected, and that the acquisition may not be accretive or produce expected cash tax benefits within the expected timeframe or to the expected extent. source

Impact estimates