Evoqua Water To Acquire Steris' Renal Business For $196.3M

• Evoqua Water Technologies Corp (NYSE:AQUA) has agreed to acquire the assets of the renal business of Steris PLC (NYSE:STE) for $196.3 million.
• The acquired renal business, historically operated by Steris' subsidiaries Mar Cor Purification and Cantel Medical, will strengthen Evoqua's medical water purification systems and aftermarket services offerings.
• The acquired business is based in Plymouth, Minnesota, with 27 service and regeneration facilities in the U.S. and Canada. The business is expected to generate annualized revenues of ~$180 million and adjusted EBITDA of ~$27 million before synergies.
• Evoqua Water intends to fund the deal through a combination of cash and proceeds from the revolving credit facility. It held cash and equivalents of $146.24 million as of September 30, 2021.
• Evoqua Water expects to close the transaction during Q2 of FY22 ending March 31, 2022.
• The business will be part of Evoqua's Integrated Solutions and Services segment upon closing the transaction.
• Price Action: AQUA shares are trading lower by 3.29% at $42.89 and STE lower by 2.90% at $225.80 on the last check Monday.