Chemical indicators used to confirm
the conditions required for sterilization
Expands Healthcare Consumable Offering Through Acquisition of U.K.
Chemical Indicator Business
MENTOR, Ohio, Sept. 15 /PRNewswire-FirstCall/ -- STERIS Corporation
(NYSE: STE) today announced that it has acquired Albert Browne Limited
(Browne), a privately-held manufacturer of chemical indicators based
in the United Kingdom (U.K.). This acquisition fits STERIS's strategic
goal of expanding the Company's offering of consumable products
used with its broad line of capital equipment for infection control
Chemical indicators are single-use consumables that support a healthcare
facility's quality assurance program by confirming the conditions
required for sterilization have been achieved within a sterilizer.
Albert Browne Limited was the first company to create a chemical
indicator for the sterilization of medical instruments in the 1930s,
and has maintained a leading position in the U.K. market through
continuous enhancement of their products. Today, Browne sells a
complete line of chemical indicators to healthcare facilities in
over 70 countries, supported by strong technical and development
capabilities, 73 dedicated employees, and a manufacturing facility
located in Leicester, England.
STERIS acquired all of the outstanding shares of Browne for 28.9
million pounds sterling (approximately U.S. $51.6 million), net
of 3.2 million pounds in cash acquired at the close of the transaction.
The transaction was financed entirely with the Company's existing
cash. For the year ending December 31, 2003, Browne's revenues were
8.6 million pounds. The transaction is expected to be neutral to
STERIS's earnings in fiscal 2005, and contribute approximately $0.01
to $0.02 to earnings in fiscal 2006.
"STERIS is unique in its ability to offer integrated customer solutions
by combining capital equipment, consumables and service to clean,
disinfect, sterilize, transport and store medical devices," said
Les C. Vinney, STERIS's President and Chief Executive Officer. "This
acquisition supports our desire to strengthen our higher margin
consumable offering, broadens our technical knowledge, and adds
a new channel into the European market. These are key elements of
our growth strategy. We welcome the talented employees of Albert
Browne and look forward to working with them to enhance the growth
in this product line through STERIS's strong channel in North America
where we have more than 1,000 people serving our hospital customers'
The mission of STERIS Corporation is to provide a healthier today
and safer tomorrow through knowledgeable people and innovative infection
prevention, decontamination and health science technologies, products
and services. The Company's more than 5,000 dedicated employees
around the world work together to supply a broad array of solutions
by offering a combination of equipment, consumables and services
to healthcare, pharmaceutical, industrial and government customers.
The Company is listed on the New York
Stock Exchange under the symbol STE. For more information,
visit http://www.steris.com .
This news release may contain statements concerning certain trends,
expectations, forecasts, estimates, or other forward-looking information
affecting or relating to the Company or its industry that are intended
to qualify for the protections afforded "forward-looking statements"
under the Private Securities Litigation Reform Act of 1995 and other
laws and regulations. Forward-looking statements speak only as to
the date of this report, and may be identified by the use of forward-looking
terms such as "may," "will," "expects," "believes," "anticipates,"
"plans," "estimates," "projects," "targets," "forecasts," and "seeks,"
or the negative of such terms or other variations on such terms
or comparable terminology. Many important factors could cause actual
results to differ materially from those in the forward-looking statements
including, without limitation, disruption of production or supplies,
changes in market conditions, political events, pending or future
claims or litigation, competitive factors, technology advances,
and changes in government regulations or the a aplication or interpretation
thereof. Other risk factors are described in the Company's Form
10-K and other securities filings. Many of these important actors
are outside STERIS's control. No assurances can be provided as to
any future financial results. Unless legally required, the Company
does not undertake to update or revise any forward-looking statements
even if events make clear that any projected results, express or
implied, will not be realized. Other potential risks and uncertainties
that could cause actual results to differ materially from those
in the forward-looking statements include, without limitation, (a)
the potential for increased pressure on pricing that leads to erosion
of profit margins, (b) the possibility that market demand will not
develop for new technologies, products or applications, or the Company's
business initiatives will take longer, cost more or produce lower
benefits than anticipated, (c) the possibility that compliance with
laws, court rulings, regulations, or certification requirements
of domestic and foreign authorities may delay or prevent new product
introductions, affect the production and marketing of existing products,
or otherwise affect Company performance, (d) the potential of international
unrest or effects of
fluctuations in foreign currencies of countries where the Company
does a sizeable amount of business, and (e) the possibility of reduced
demand, or reductions in the rate of growth in demand, for the Company's
products and services.