LONDON – U.S. pharmaceuticals firm Steris Corp. (IW 500/450) said Monday it has agreed a $1.9-billion takeover of Britain's Synergy Health, in a deal which will cut its tax bill.
"The boards of Steris and Synergy are pleased to announce that they have reached agreement on the terms of a recommended combination," the pair said.
The new company will establish its joint tax headquarters in Britain under the terms of the cash-and-shares offer, which values the sterilization services group at £19.50 per share.
That is 39% higher than Synergy's closing share price on Friday.
Steris shareholders will own 70% of the new group, while Synergy investors will own the remaining 30%.
The new combined group, which will be incorporated in Britain, is expected to have an effective taxation rate of 25%.
Steris had a tax rate of 31.3% for its 2014 fiscal year which ended on March 31.
Copyright Agence France-Presse, 2014