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About Steris Corporation

STERIS makes sterilization systems for health care, pharmaceutical, medical device, and research markets. Health care professionals use the firm's steam and chemical sterilization systems to sterilize surgical and diagnostic devices. STERIS also makes washers and decontamination systems, cleaning and infection prevention chemicals, and endoscopy consumables. Its surgical support products include exam lights, surgical tables, and scrub sinks. The company installs and maintains its equipment and provides outsourced sterilization and instrument repair services. STERIS provides products and services in more than 100 countries but gets most sales from the US market.

Operations

STERIS operates through four primary segments. The Healthcare Products and Healthcare Specialty Services segments cater to health care providers, while the Applied Sterilization Technologies (AST) and Life Sciences units offer services for medical manufacturing industries.

The Healthcare products segment, accounting for nearly half of annual revenue, makes equipment and consumables for hospitals, surgery centers, and other medical facilities. It also installs and maintains its equipment.

The Healthcare Specialty Services segment (nearly 20% of sales) provides outsourced sterilization and instrument repair services to hospitals and other health providers. The Healthcare Specialty Services division includes the STERIS Instrument Management Services (STERIS IMS) subsidiary. 

Serving the drug and medical device industries, the AST segment (20% of revenue) operates contract sterilization and lab facilities that help manufacturers assess new technologies.

The Life Sciences segment (15% of sales) sells sterilization consumables and equipment used by pharma companies.

Financial Performance

STERIS has steadily increased its revenue over the past few years via acquisitions and organic growth efforts. Overall, sales grew 50% between fiscal 2015 and fiscal 2019 (ending March 31). Net income attributable to shareholders fluctuated slightly but more than doubled over the five-year period. 

Revenue increased 6% in 2019 to some $2.8 billion. STERIS reported organic growth in all business segments that year, offset partially by 2018 divestitures and unfavorable currency fluctuations. The Healthcare Products segment showed a 5% revenue increase on sales of capital equipment, services, and consumables. The Healthcare Specialty Services and Applied Sterilization Technologies segments reported 8% and 9% growth, respectively, while Life Sciences increased sales by 5%. 

Net income rose 5% in 2019 to about $304.1 million due to higher revenue, despite a rise in operating expenses. 

The company ended 2018 with $220.6 million in cash, up $19.1 million from 2017. Operating activities contributed $539.5 million, while investing activities used $213.2 million (mostly property, plant, and equipment purchases), and financing activities used $294.8 million via dividend payments, debt payments, and share repurchases.

Strategy

STERIS is continually working to develop new and improved products to enhance its offerings. Revenue growth in 2019 was boosted by recent launches of washers, sterilizers, and biological indicators. The company also looks to grow through partnership and acquisition opportunities. 

The firm has invested significantly in expanding its Applied Sterilization Technologies (AST) unit in recent years. STERIS plans to further spend more than $110 million in fiscal 2020 to build or expand the division's contract sterilization and laboratory facilities.

The company is streamlining its operations to improve quality and lower costs, including bringing more manufacturing operations in-house and enacting lean process enhancements. Due to reduced demand for certain product offerings, STERIS announced a restructuring plan in late 2018 to close two manufacturing plants (in Brazil and the UK) and relocate production to existing plants during fiscal 2020. The company also divested its Synergy Health Healthcare Consumable Solutions business in 2018.

In 2019 parent entity STERIS plc redomiciled from the UK to Ireland to avoid complications from the UK's exit from the European Union; its STERIS Limited subsidiary continues to operate from England.

Company Background

The company was founded as Innovative Medical Technologies in 1985 and was renamed STERIS in 1987.

Major acquisitions over the years include Integrated Medical Systems (now STERIS Instrument Management Services) in 2014 and UK-based outsourcing and contract sterilization firm Synergy Health in 2015. As a part of the Synergy Health transaction, the company redomiciled to England and changed its name from STERIS Corporation to STERIS plc. 

Steris Corporation

5960 Heisley Rd
Mentor, OH 44060-1834
Phone: 1 (440) 354-2600

Firm Stats

Employer Type: Privately Owned
Chief Patent Counsel: Mike Centanni
Chief Enterprise Architect: Mitchell Dysart
Chief Information Security Officer (Ciso): Edward Pollock
Employees (This Location): 843
Employees (All Locations): 7,655

Major Office Locations

Mentor, OH

Other Locations

Birmingham, AL
Montgomery, AL
Little Rock, AR
Yuma, AZ
Richmond, CA
San Diego, CA
Santa Clara, CA
Tampa, FL
Northborough, MA
Saint Louis, MO
Hillsborough, NJ
Reno, NV
Chester, NY
Melville, NY
Mentor, OH
Keller, TX