Medical sterilization equipment maker Steris (STE) - Get Report on Tuesday said it is merging with Cantel Medical (CMD) - Get Report in a deal valued at $4.66 billion that combines two of the larger providers of infection prevention products.
Under terms of the agreement, Steris will acquire Cantel in a cash-and-stock transaction valued at $84.66 a share.
A combined company will offer cost-cutting opportunities and expand Steris' reach into the dental market. It will also help both companies navigate the pandemic, which has been both a bane and boon for medical equipment and related service providers makers as demand for equipment used in elective medical procedures has been offset by demand for PPE and other protective gear.
Cantel stock initially rose nearly 10% after the Wall Street Journal first reported the pending deal. The shares were up 2.89% at $87.11 in premarket trading. Shares of Steris ended the trading day Monday down 1.16% at $200.46 in New York.