Steris doubles down on healthcare consumables with $2.1 billion Xodus buy

Oct 12 — Medical equipment maker Steris will buy privately held Xodus ​Medical for $2.1 billion, adding surgical products designed to improve safety for patients and operating-room staff to its healthcare consumables business.

The ‌acquisition strengthens Steris' push into hospitals and laboratories, where its sterilization and consumables business ⁠is already seeing sustained demand.

In ​August, as part of its ⁠consumables push, the company said it would spend $600 million on a ‌North Carolina hub ‌to manufacture and distribute formulated chemicals used in healthcare sterilization ⁠and pharmaceutical production.

"Net-net, this is a ⁠logical tuck-in that adds additional operating-room supplies to Steris' healthcare business," said Stephens analyst Steven Etoch.

He also said Steris may be able to lift Xodus sales by using its larger sales network and established relationships with hospital operating rooms.

Xodus makes surgical-safety ‌devices for hospitals worldwide and is best ​known for its Pink Pad system, which secures and stabilizes patients on the operating table to reduce the risk of slipping or pressure-related injury during surgery.

Its portfolio also includes single-use operating-room products such as electrosurgical accessories, medication labels, anti-fog products for surgical lenses, and safety devices for the handling of needles and ​other sharp surgical instruments.

Steris plans to fund the Xodus Medical acquisition primarily ‌with debt, with ‌the ⁠transaction expected to close by December 31, 2026, subject to regulatory approvals.

The company expects the deal will generate cash tax benefits with a net present value of about $300 million, resulting in a net purchase ‌price of about $1.8 billion.

Steris ​said Pennsylvania-based Xodus Medical is anticipated ‌to generate about $245 million ⁠in revenue ​in 2026.

(Reporting by Christy Santhosh in Bengaluru; Editing by Leroy Leo and ​Vijay Kishore)

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