Boston, MA 05/15/2014 (wallstreetpr) – The maker of sterilizer STERIS Corp (NYSE:STE) is not about to end its acquisition spree as long as it still harbors appetite to grow its specialty service business. The company has in recent times spent hundreds of millions of dollars in acquisitions that are expected to improve its performance and expand the footprint in the specialty business.
Though the company would not discuss in details its growth strategy, it has always made it known what it has bought. The series of acquisition that started in 2012 began with the purchase of the privately-held US Endoscopy for a $270 million transaction that supported the company’s entry into the gastrointestinal devices business.
That acquisition was followed by the purchase of Total Repair Express and Spectrum Surgical Instruments Corp, two companies that operate in the surgical instrument repair space. The two independent companies were bought for $110 million. The company also acquired an endoscopy sales and repair provider Life Systems. The business joined STERIS Corp (NYSE:STE)’s Spectrum Surgical subsidiary.
The most recent acquisition is that of Integrated Medical Systems (IMS), a consulting company in the sterile processing and surgical instrument management. STERIS Corp purchased the company for $165 million and spent an additional $10 million in the acquisition of the real estate property associated with IMS.
Point blank
It is no longer a secret the plans that STERIS Corp (NYSE:STE) has for its ongoing acquisitions. According to CEO Walt Rosebrough, the company seeks to expand its specialty services operations, and that explains the wave of acquisitions happening in the company. Though the company remains keen on organic growth, it also believes that acquisitions will support speedy benefits in the specialty services market.
Financial performance
STERIS Corp (NYSE:STE) reported strong revenue growth for its 4Q2014. The company earned a profit of $38.9 million or $0.65 per diluted share. Revenue in the quarter was $465 million for the three months to March 31. The performance compared with $41.4 million profit or $0.70 per share and revenue of $426 million in 4Q2013.
