Synergy Health To Acquire SRI/Surgical Express

In short

In a newly issued press release, UK headquartered Synergy Health plc, and SRI/Surgical Express, Inc have announced they have entered into a definitive merger agreement. Synergy describes itself as a leading global provider of outsourced sterilisation services to the medical device market and healthcare sector, while SRI/Surgical Express, Inc., is a provider of central processing and supply chain management services to hospitals and surgery centres in the United States.

Background

Synergy Health, based in Swindon UK, is an outsourcer of sterilisation services to the medical device market as well as to hospitals and other healthcare providers.

SRI serves hospitals and surgery centers in 25 states from 10 reprocessing facilities and four distribution centres located throughout the United States.

Under the terms of the agreement, a subsidiary of Synergy Health will acquire all of the outstanding shares of common stock of SRI for $3.70 per share in cash through a cash tender offer followed by a merger. The transaction is valued in the aggregate at approximately $25.06 million in equity value and $38.45 million in enterprise value.

The cash consideration represents a premium of approximately 17% to SRI’s closing share price on September 13, 2011, the last trading day before SRI announced that it would explore strategic alternatives. The agreement has been unanimously approved by each company’s Board of Directors.

The tender offer transaction, which is subject to customary closing conditions, is expected to close by July 16, 2012.

Company comments

for SRI

Gerald Woodard, CEO of SRI Surgical commented, “SRI Surgical, and the healthcare customers we serve, will benefit greatly from this very strategic acquisition. Both companies have extensive expertise in sterilization technology, along with 20 years of customer service in this area. We look forward to blending the strengths of SRI and Synergy Health as we focus on the growth of our reusable surgical linens, instrument reprocessing, and CS management services.”

for Synergy Health

Dr. Richard Steeves, CEO of Synergy Health, stated, “We are very pleased to have the opportunity to bring together the strengths of Synergy Health and SRI Surgical. I feel confident that the experience and resource of Synergy Health will enable SRI to build upon its position as the leading provider of CS management services, and fulfill its ambition of becoming a national leader in the provision of environmentally sound service solutions for healthcare providers. I look forward to working with the team of talented people at SRI and embarking upon another period of sustained growth.”

Source: Synergy Health plc., Globe Newswire