Photo Courtesy of Steris Corp.

Steris Corp Purchase of Synergy Health Cuts its Tax Bill

Oct. 13, 2014
The new combined group, which will be incorporated in Britain, is expected to have an effective taxation rate of 25%, compared to the 3.13% Steris had been paying.

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

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