STERIS to acquire Xodus Medical for $2.1 billion
Oct 13, 2026
STERIS plc (NYSE: STE) announced on Monday, October 12, 2026, that its subsidiary STERIS Corporation has signed a definitive agreement to acquire Xodus Medical, a specialty surgical products business focused on patient and operating room staff safety. The purchase price is $2.1 billion at closing, subject to customary adjustments.
Deal terms
STERIS said it expects to receive cash tax benefits with a net present value of about $300 million as a result of the transaction. Taking these into account, the net purchase price would be about $1.8 billion. Xodus shareholders may also receive up to $150 million in additional earnout consideration, based on performance targets for calendar 2028.
The acquisition is expected to be financed primarily with debt. STERIS expects the transaction to close by December 31, 2026, subject to customary closing conditions and regulatory approvals.
About Xodus Medical
Xodus Medical was founded in 1993 and is headquartered near Pittsburgh, Pennsylvania. The company develops and manufactures medical devices designed to improve patient safety during surgery. Its best-known products are the Pink Pad patient positioning systems, which help keep patients in position on the operating table. The company also sells single-use surgical supplies used in operating rooms.
Financial details
According to STERIS, Xodus is projected to generate about $245 million of revenue in calendar 2026. STERIS also disclosed projected adjusted operating earnings (adjusted EBIT) of about $135 million for calendar 2026. This is a non-GAAP measure based on projected operating income of $121 million, adjusted for about $14 million of charges, mostly related to a royalty arrangement that was terminated during 2026.
STERIS said the business has grown at double-digit rates and that it expects the acquisition to be accretive to its top-line growth, margins and adjusted earnings. These are company expectations, and actual results may differ.
What STERIS said
STERIS chief executive Dan Carestio said Xodus Medical's product portfolio "complements and expands" STERIS's offering, in particular by adding consumables used in the operating room. STERIS said it will issue a revised fiscal 2027 outlook that includes Xodus Medical after the transaction closes.
About STERIS
STERIS provides products and services for infection prevention and surgical procedures to hospitals, life sciences companies and other customers. Its business includes sterilisation equipment, surgical products, consumables and services. Consumables are products that are used and replaced regularly, which can provide recurring revenue.
Advisers
Goldman Sachs served as exclusive financial adviser to STERIS, with Jones Day as legal counsel. J.P. Morgan served as exclusive financial adviser to Xodus Medical, with Morgan, Lewis & Bockius as legal counsel.
Financing with debt
Financing an acquisition primarily with debt increases a company's borrowings. Investors often look at how a company plans to repay debt over time and how interest costs may affect earnings. STERIS did not provide details of the financing structure in its announcement.
Analyst commentary
Stephens analyst Steven Etoch described the acquisition as a logical addition to STERIS's healthcare business and said STERIS's larger sales network could help increase Xodus sales, according to market reports. This is analyst commentary, not a company statement.
Risks and uncertainties
The transaction may not be completed on the expected terms or timetable, and it requires regulatory approvals. The projected revenue and earnings figures are company estimates. Integration of an acquired business can take longer or cost more than expected, and the earnout depends on future performance. Higher debt can increase financial risk.
What this means for investors
For Investing.one users following STE, the acquisition and the revised outlook STERIS plans to issue after closing may be relevant. The figures above are company projections, not reported results.
Sources
- STERIS press release (via Yahoo Finance)
- GlobeNewswire
- Xodus Medical (PR Newswire)
- Reuters via Yahoo Finance
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