Steris (NYSE:STE) announced this week that it has agreed to buy Key Surgical, a manufacturer of disposable hospital and surgical products, for $850 million.
Mentor, Ohio-based Steris said it expects that the acquisition will qualify for a tax benefit related to tax-deductible goodwill, effectively reducing the purchase price to approximately $810 million. Key Surgical, a portfolio company of Chicago-based Water Street Healthcare Partners, is located in Eden Prairie, Minn., about 20 miles from Steris’ U.S. laboratory.