STERIS has hygiene hysteria. The company makes sterilization systems for health care, pharmaceutical, research, and industrial markets. In addition to the company's sanitizing lotions and soaps, health care professionals use the firm's steam and chemical sterilization systems to sterilize surgical and diagnostic devices. STERIS also makes disinfection systems and infection prevention consumables. The company sells such surgical support products as exam lights, surgical tables, and scrub sinks. STERIS sells its equipment and consumables in more than 60 countries. In North America, its Isomedix unit offers contract sterilization for more than a dozen health care, industrial, and consumer products makers.
Products sold in the US market account for three-fourths of STERIS' sales. The company has contract sterilization, manufacturing, and warehouse locations throughout the US, as well as in Canada, Mexico, Brazil, France, Finland, and the UK.
Sales and Marketing
The company's US offerings are marketed to hospitals and surgery centers through STERIS' direct sales force. International sales are conducted through direct sales offices in Brazil, Canada, China, France, Germany, India, Italy, Japan, Malaysia, Russia, Singapore, Spain, the UAE, and the UK, as well as through representative distributors in other countries. The company's life sciences segment markets sterilization products to customers in the pharmaceutical and research industries.
STERIS experienced a downturn in revenues in both 2010 and 2011 due to an FDA-mandated rebate program and legal settlements related to its STERIS SYSTEM 1 liquid chemical sterilization system; net income also took a nosedive on system-related charges in 2011. After the regulatory hurdles were cleared and sales of its newer SYSTEM 1E (and other products and services) took off, revenues increased by 16% to some $1.4 billion in 2012, and net income grew by 165% to some $136 million.
STERIS is continually working to develop new and improved products to enhance its offerings, including new chemical agents, disinfection and sterilization systems, and surgical equipment. STERIS has launched several new products in 2011 including two new laboratory glassware washers (Reliance 100 series and the Reliance 380pg) and the Revital-Ox cleaning solutions for endoscopy equipment.
STERIS also looks to grow through partnership and acquisition opportunities. In 2011 the company formed a partnership with Toshiba to collaborate on the development of new operating room surgical suites. In addition, it partnered with St. Jude to develop new cardiac laboratory solutions in 2012.
To expand its contract sterilization services, the Isomedix gamma irradiation facility in New York underwent construction efforts in 2012.
Shortly after announcing a restructuring plan in 2014 that included closing its Mentor, Ohio, facility that made a discontinued product, STERIS said it was buying Integrated Medical Systems (IMS), a surgical instrument repair, sterilization, and maintenance firm for an undisclosed amount.
Mergers and Acquisitions
In 2014 STERIS became the latest US company to make a purchase aimed, at least partially, at reducing its tax burden. It's acquiring UK-based Synergy Health, an outsourced medical instrument sterilization company, for nearly $2 billion. The move will allow STERIS to avoid US corporate taxes.
In 2012 the company purchased Spectrum Surgical and Total Repair Express, which provide instrument repair products and services to hospitals in the US, for some $110 million. The purchase expands STERIS' specialty services operations.