MENTOR, Ohio, Oct. 31 /PRNewswire-FirstCall/ -- STERIS Corporation today announced that it has completed the previously announced (September 28, 2005) agreement to sell its freeze dryer (lyophilizer) product line, to GEA Group of Germany. Under the terms of the agreement, a subsidiary of the GEA Group has acquired STERIS’s freeze dryer business for 20 million euros (approximately $24 million). The transaction is anticipated to result in an after-tax gain of approximately $4 million. The freeze dryer product line, based in Cologne, Germany, was part of STERIS’s Life Sciences segment and had revenues of approximately $40 million in fiscal year 2005.
“We are very pleased that the freeze dryer product line has been purchased by a strategic buyer with a focus on the pharmaceutical industry,” said Les C. Vinney, STERIS’s president and chief executive officer. “With the closing of the divestiture, we will continue our focus on improving our core Life Sciences business and returning this segment to strong growth and profitability. We anticipate a smooth transition of the freeze dryer business to new ownership and are committed to meeting the broader needs of our pharmaceutical customers throughout the world.”
The GEA Group is a leading global technology group based in Germany with over 250 operating companies in roughly 50 countries focused on specialty mechanical engineering and plant engineering.
About STERIS
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 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 application or interpretation thereof. Other risk factors are described in the Company’s Form 10-K and other securities filings. Many of these important factors 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, (e) the possibility of reduced demand, or reductions in the rate of growth in demand, for the Company’s products and services, and (f) post closing adjustments and other conditions may modify the anticipated gain.
STERIS Corporation
CONTACT: Aidan Gormley, Senior Director, Corporate Communications andInvestor Relations of STERIS Corporation, +1-440-392-7607
Web site: http://www.steris.com//