Steris To Buy Econopak For $175 Mln.

(RTTNews) - Steris Corp (STE), a maker of infection prevention products, on Wednesday said it entered into a stock purchase agreement to buy General Econopak Inc for $175 million in cash, subject to a customary working capital adjustment.

The company expects the deal to close by the end of the second quarter of fiscal 2016.

Econopak is a Philadelphia, Pennsylvania-based manufacturer of product solutions in the areas of sterility maintenance and barrier protection for pharmaceutical, biotechnology and veterinary customers.

Steris expects the deal would qualify for joint election tax benefit of about $30 million.

Also, Steris said that earlier this month, it acquired all the outstanding stock of Black Diamond Video Inc. ("BDV").

BDV is a California-based developer and provider of operating room integration systems. The aggregate merger consideration, giving effect to the maximum post-merger earnout that may be payable, is $51 million.

Assuming a close of the Econopak acquisition, and including the BDV acquisition, Steris anticipates that the impact of both transactions will be accretive to adjusted earnings per diluted share by about $0.06 in fiscal 2016 and about $0.15 in fiscal 2017.