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    STERIS plc (STE)

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    Business Description

    STERIS is a leading global provider of products and services focused on infection prevention, supporting patient care through innovative healthcare and life science solutions. The company operates in three main business segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences . STERIS offers a comprehensive range of products and services, including infection prevention consumables, capital equipment like sterilizers and surgical tables, and services such as equipment maintenance and instrument repair . The company has divested its Dental segment to focus on core markets in healthcare, pharma, and MedTech .

    1. Healthcare - Offers a comprehensive range of products and services for healthcare providers, including infection prevention consumables, capital equipment like sterilizers and surgical tables, and services such as equipment maintenance and instrument repair .
    2. Applied Sterilization Technologies (AST) - Provides contract sterilization and laboratory testing services for medical device and pharmaceutical manufacturers, offering a technology-neutral approach from testing through sterilization .
    3. Life Sciences - Supports biopharmaceutical and medical device research and manufacturing facilities with products like pharmaceutical detergents, sterilizers, and maintenance services .

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Karen L. BurtonVice President and Chief Accounting OfficerJanuary 2017Karen L. Burton serves as the Vice President and Chief Accounting Officer at STERIS plc. She assumed this role in January 2017. Prior to her current position, she also served as Controller from January 2017 until December 2023 .
    Daniel A. CarestioPresident and CEOJuly 2021Daniel A. Carestio has served as the President and CEO of STERIS plc since July 2021. He was previously the Senior Vice President and Chief Operating Officer from August 2018 to July 2021 .
    Mary Clare FraserSenior Vice President and Chief Human Resources OfficerMay 2022Mary Clare Fraser serves as the Senior Vice President and Chief Human Resources Officer at STERIS. She assumed this role in May 2022. She joined STERIS in July 2020 as the Vice President and Chief Human Resources Officer .
    Kenneth E. KohlerSenior Vice President and General Manager, ASTFebruary 2024Kenneth E. Kohler serves as Senior Vice President and General Manager, AST at STERIS. He assumed this role in February 2024. Previously, he was Vice President and General Manager of AST Americas from November 2015 to February 2024 .
    Julia K. MadsenSenior Vice President and General Manager, Life SciencesJuly 2020Julia K. Madsen serves as Senior Vice President and General Manager, Life Sciences at STERIS. She assumed this role in July 2020. Previously, she was Vice President and General Manager of Life Sciences, Consumables .
    Cary L. MajorsSenior Vice President and President, HealthcareAugust 2022Cary L. Majors serves as the Senior Vice President and President, Healthcare at STERIS. He assumed this role in August 2022. Previously, he was Senior Vice President, Americas Commercial Operations from August 2019 to August 2022 .
    Renato G. TamaroVice President and Corporate TreasurerAugust 2017Renato G. Tamaro serves as Vice President and Corporate Treasurer at STERIS. He assumed this role in August 2017. Previously, he served as Assistant Treasurer from March 2006 to July 2017 .
    Michael J. TokichSenior Vice President and Chief Financial OfficerAugust 2017Michael J. Tokich serves as the Senior Vice President and Chief Financial Officer at STERIS plc. He assumed this role in August 2017. Previously, he was Senior Vice President, Chief Financial Officer, and Treasurer .
    Andrew XilasSenior Vice President and General Manager, DentalJune 2021Andrew Xilas serves as Senior Vice President and General Manager, Dental at STERIS. He assumed this role in June 2021. He joined HuFriedy Group in 1987, where he held roles of increasing responsibility .
    J. Adam ZangerleSenior Vice President, General Counsel, and Company SecretaryJuly 2018J. Adam Zangerle serves as Senior Vice President, General Counsel, and Company Secretary at STERIS plc. He assumed this role in July 2018. Previously, he was Vice President, General Counsel, and Secretary .

    Questions to Ask Management

    1. With the AST segment no longer expected to exit the year at double-digit revenue growth and margins impacted by labor and energy costs, what specific strategies are you implementing to improve AST's growth trajectory and profitability in the face of these challenges?
    2. Given the anticipated flat to slightly down Healthcare capital equipment revenue for fiscal 2025 due to timing of shipments and difficult fourth quarter comparisons, how confident are you that recurring revenue outperformance can fully offset this decline, and what steps are you taking to drive capital equipment growth?
    3. The Life Sciences segment is now expected to have flat revenue for the year, with declines in capital equipment sales partially mitigated by consumables. What are the underlying factors contributing to the decline in Life Sciences capital equipment, and how do you plan to address this weakness?
    4. Labor and energy costs continue to pressure margins, particularly in AST, and you mentioned the inability to immediately pass on increased energy costs to customers. How are you planning to manage these costs, and when do you anticipate seeing margin improvement as a result?
    5. You reported a one-time loss on a capital equipment order in your med-x business unit that negatively impacted AST margins. Can you provide more details on what led to this loss and what measures you're putting in place to prevent similar issues in the future?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateMay 3, 2023
    End Date/DurationNo specified expiration date
    Total additional amount$500 million
    Remaining authorization amount$400 million (as of September 30, 2024)
    DetailsThe program allows for share repurchases through open market purchases, including 10b5-1 plans, and can be activated, suspended, or discontinued at any time.

    Debt Maturity Schedule

    YearAmount Due (Millions)Debt TypeInterest Rate (%)% of Total Debt
    202480.0Private Placement Senior NotesN/A3.6% = (80.0 / 2,236.158) * 100
    2029141.396Revolving Credit FacilityN/A6.3% = (141.396 / 2,236.158) * 100
    2031N/A2.700% Senior Notes2.700N/A
    2051N/A3.750% Senior Notes3.750N/A
    N/A680.794Private Placement Senior NotesN/A30.4% = (680.794 / 2,236.158) * 100
    N/A1,350.0Senior Public NotesN/A60.4% = (1,350.0 / 2,236.158) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • 3M: Competitor in product offerings.
    • Baxter: Competitor in product offerings.
    • Boston Scientific: Competitor in product offerings.
    • Belimed: Competitor in product offerings.
    • Fortive: Competitor in product offerings.
    • Getinge: Competitor in product offerings.
    • Karl Storz: Competitor in product offerings.
    • Olympus: Competitor in product offerings and service lines.
    • Ruhof: Competitor in product offerings.
    • SteelCo: Competitor in product offerings.
    • Stryker: Competitor in product offerings.
    • Skytron: Competitor in product offerings.
    • Wassenburg: Competitor in product offerings.
    • Agiliti: Competitor in service lines.
    • BBraun: Competitor in service lines.
    • Crothall: Competitor in service lines.
    • Pentax: Competitor in service lines.

    Auditor

    NameStart DateEnd DateReason for Change
    Ernst & Young LLP1989 PresentCurrent auditor