October 13, 2014 / 8:15 AM / 5 years ago

BRIEF-Steris Corp to acquire UK's Synergy Health for $1.9 bln

Oct 13 (Reuters) - Steris Corp :

* Steris and Synergy are pleased to announce that they have reached agreement on terms of a recommended combination of Synergy with Steris

* Synergy shareholders will be entitled to receive: for each Synergy share: 439 pence in cash and 0.4308 new Steris shares

* A premium of 39 pct to closing price of £14.00 per Synergy share on latest practicable date

* Value of £19.50 per synergy share values entire issued and to be issued share capital of synergy on a fully diluted basis at approximately £1.2 billion

* Synergy shareholders are expected to hold new Steris shares representing approximately 30 pct of issued share capital of new steris

* Walt Rosebrough (current Steris president and CEO) will be CEO of new steris, and John P. WAREHAM (current Steris chairman) will be chairman of new Steris

* Intended that new Steris shares will be listed on NYSE immediately upon completion of combination with ticker symbol number STE

* New Steris expected to have combined revenue of approximately $2.6 billion and employ approximately 14,000 people

* Combination will result in compelling financial benefits to combined group, including total annual pre-tax cost savings of $30 million or more

* Deal not expected to have impact on co’s adjusted eps until completion of combination, which is anticipated by 31 March 2015

* Steris expects combination will be significantly accretive to new Steris’s adjusted net income per diluted share beginning in fiscal year 2016

* Pre-Tax cost savings will be phased 50 pct in fiscal year 2016 and 100 pct thereafter Source text for Eikon: Further company coverage:

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