In a M&A agreement, Medical device maker Steris Corp will buy privately held diagnostics company U.S. Endoscopy Group Inc for $270 million in cash to expand its operations in the gastrointestinal endoscopy market.
The M&A deal is expected to reduce Steris’ fiscal 2013 earnings by about 5 cents a share, but will add to earnings from 2014.
The company kept its 2013 earnings forecast of between $2.00 and $2.20 per share.
Steris, which provides infection prevention and surgical products and services, said it will finance the M&A deal through cash and borrowings.
Steris will also buy certain land and buildings from US Endoscopy for about $7 million.
Steris shares closed at $31.60 on Monday on the New York Stock Exchange.
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