Dive Brief:
- Steris will eliminate “less than 300 positions” as part of a reorganization announced earlier this month, the company said in a Wednesday filing with the Securities and Exchange Commission.
- The disclosure comes after the company reported a fourth-quarter net loss earlier this month and announced a restructuring plan designed to bolster profitability and efficiency. Steris did not return a request for comment by the time of publication.
- The restructuring includes product line re-evaluations, facility consolidations, a strategy shift in the company’s healthcare surgical business in Europe and an impairment review for an X-ray accelerator that was internally developed, according to the company.
Dive Insight:
Steris makes medical equipment such as endoscopes and surgical tables and offers a broad range of sterilization services. In April, the company agreed to sell its dental business to private equity firm Peak Rock Capital for $787.5 million and focus on its core healthcare, pharmaceutical and medtech businesses.
The Mentor, Ohio-based company expects the restructuring program to drive about $25 million in annual savings, with most of the benefit in fiscal 2026 and beyond.
Steris recorded pre-tax expenses of $44.4 million related to the restructuring in its fiscal year 2024, which ended March 31. It expects additional restructuring expenses of about $55.3 million, of which $36.2 million is related to severance and other compensation costs, $15.3 million is for lease and other contract termination costs, and $3.8 million is tied to accelerated depreciation and amortization.
The company expects the restructuring to be mostly complete by the end of its fiscal 2025, which will end early next year.
Steris employed more than 18,000 people worldwide in its fiscal 2024, according to the filing.