Steris Corp Purchase of Synergy Health Cuts its Tax Bill
<p>Photo Courtesy of Steris Corp.&nbsp;</p>

Steris Corp Purchase of Synergy Health Cuts its Tax Bill

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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