Man in violation of privacy law

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Antitrust Law Daily, May 29, 2015

FTC challenges Steris Corp.’s $1.9B acquisition of Synergy Health

By Greg Hammond, J.D.

The FTC issued an administrative complaint today, challenging Steris Corp.’s proposed acquisition of Synergy Health plc. According to the Commission, the $1.9 billion transaction would significantly reduce future competition in regional markets for sterilization of products using radiation, in violation of antitrust laws (FTC v. Steris/Synergy Health, File No. 151 0032).

The FTC alleged that both companies offer contract sterilization services that ensure products, such as medical devices and human tissue products, are free of undesirable microorganisms prior to reaching consumers. Today, gamma radiation is considered the only feasible method of sterilizing large volumes of dense and heterogeneously packaged products, according to the Commission. Only Steris and one other company provide contract gamma sterilization services in the United States. However, at the time the proposed merger was announced, Synergy was implementing a strategy to open contract x-ray sterilization services in the United States.

The Commission believes that it is unlikely that new competitors in the market for contract radiation sterilization services would replicate the competition that would be eliminated by the merger. Rather, the proposed transaction would eliminate likely future competition between Steris’ gamma sterilization facilities and Synergy’s planned x-ray sterilization facilities in the United States, depriving consumers of alternative sterilization services and additional competition, the agency claimed.

The FTC is additionally seeking a temporary restraining order and preliminary injunction to prevent the proposed merger.

Companies: Steris Corp.; Synergy Health plc

MainStory: TopStory AcquisitionsMergers Antitrust FederalTradeCommissionNews

Antitrust Law Daily

Introducing Wolters Kluwer Antitrust Law Daily — a daily reporting service created by attorneys, for attorneys — providing same-day coverage of breaking news, court decisions, legislation, and regulatory activity.

A complete daily report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your daily email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.