Steris doubles down on healthcare consumables with $2.1bn Xodus purchase

Steris (STE) will buy privately held Xodus Medical for $2.1bn, adding surgical products designed to improve safety for patients and operating-room staff to its healthcare consumables business.

The acquisition strengthens the medical equipment maker’s push into hospitals and laboratories, where its sterilization and consumables operations are already seeing sustained demand. In August, as part of the same push, the company said it would spend $600mn on a North Carolina hub to manufacture and distribute formulated chemicals used in healthcare sterilization and pharmaceutical production.

Steven Etoch, an analyst at Stephens, called the deal “a logical tuck-in that adds additional operating-room supplies to Steris’ healthcare business.” He said Steris may be able to lift Xodus sales by drawing on its larger sales network and established relationships with hospital operating rooms.

Pennsylvania-based 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 handling needles and other sharp instruments.

Steris plans to fund the acquisition primarily with debt, with the transaction expected to close by the end of 2026, subject to regulatory approvals. The company expects the deal to generate cash tax benefits with a net present value of about $300mn, bringing the net purchase price to about $1.8bn.

Steris said Xodus is expected to generate about $245mn in revenue in 2026.