Shares in Swindon-based international medical sterilisation group Synergy Health soared by more than 40% in a few hours last week after its £1.2bn takeover by a US medical technology giant overcame a major hurdle.
A federal court in Ohio refused to halt the deal with Steris Corp despite attempts by US regulators to block it on competition grounds.
The Federal Trade Commission (FTC) claimed the acquisition broke anti-trust rules as Synergy had decided not to sell its x-ray sterilisation equipment in the US market where it would have competed against Steris’ gamma ray technology.
Steris president and CEO Walt Rosebrough said: “We are pleased with the court’s decision and we will work to expeditiously close the acquisition of Synergy Health.”
Both Steris and Synergy recently extended the deadline to complete the deal to December 31.
Ohio-based Steris Corporation launched its approved bid for Synergy, which provides services ranging from hospital laundry to sterilising sophisticated medical devices, nearly a year ago.
The new, combined company would have a combined revenue of about $2.6bn and employ about 14,000 people in 60 countries.
But in May the FTC said they could block the move as being anti-competitive – an announcement that triggered a 20% fall in Synergy’s shares.
Steris said following its acquisition of Synergy it would launch a new company registered in the UK – a controversial move that would reduce Steris’ tax bill.
Synergy shareholders are expected to hold 30% of the new company with Steris stockholders holding the remaining 70%.
Synergy’s head office is on Swindon’s Windmill Hill Business Park. The head office of its Applied Sterilisation Technologies division is on Swindon’s Elgin Industrial Estate and it also operates an electron beam sterilisation plant and microbiological services laboratory at South Marston.
