Business Acquisitions and Divestitures Business Acquisitions and Divestitures (Tables)

12 Months Ended

Mar. 31, 2023

Mar. 31, 2022

Business Combinations and Divestitures [Abstract]

The total consideration for Cantel Common Stock and stock equivalents was $3,599,471. The consideration was comprised of the following:


(shares in thousands)
Cash consideration $16.93 per Cantel share (42,816 shares)	$	716,412
Cash consideration for fractional shares	14
STERIS plc ordinary shares 14,297 shares at ($188.07 per share)	2,689,317
Consideration related to Cantel equity compensation programs	18,173

Consideration related to equity component of Cantel convertible debt	175,555
Total purchase consideration	$	3,599,471

Schedule of Assets Acquired and Liabilities Assumed, Cantel Acquisition

The table below presents the allocation of the purchase price to the net assets acquired based on the fair values at the acquisition date.


	March 31, 2022 (As Previously Reported)		Adjustments		Final
Cash	$	169,073	$	—	$	169,073
Accounts receivable	172,226		—		172,226
Inventory	249,221		—		249,221
Property, plant, and equipment	267,360		(1,282)		266,078
Lease right-of-use assets	59,720		—		59,720
Other assets	72,864		—		72,864
Intangible assets	2,942,000		—		2,942,000
Goodwill	1,522,381		22,088		1,544,469
Total assets acquired	5,454,845		20,806		5,475,651
Convertible debt, par value	168,000		—		168,000
Other current liabilities	247,549		5,595		253,144
Long-term lease obligations	47,856		—		47,856
Deferred income taxes, net	670,685		15,211		685,896
Long-term indebtedness	721,284		—		721,284
Total liabilities assumed	1,855,374		20,806		1,876,180
Net assets acquired	$	3,599,471	$	—	$	3,599,471

Schedule of Finite-Lived Intangible Assets

The estimated useful lives are based on the historical experience of STERIS, available similar industry data and assumptions made by management.Values and useful lives are presented in the table below.

Total

Useful Life

Customer relationships

2,278,000

9-10 years

Trade names

422,000

11 years

Developed technology

222,000

9 years

Non-compete agreements

20,000

2 years

Total intangible assets acquired

2,942,000

Business Acquisition, Pro Forma Information [Table Text Block]

The following unaudited pro forma information gives effect to our acquisition of Cantel as if the acquisition had occurred on April 1, 2020 and Cantel had been included in our consolidated results of operations for the fiscal years ended March 31, 2022 and 2021.


	Fiscal Year Ended March 31,
	(unaudited)
	2022		2021
Net revenues	$	4,790,161	$	4,190,244
Net income from continuing operations	449,382		5,849

Business Combination Assets Acquired and Liabilities Assumed

The table below summarizes the allocation of the purchase price to the net assets acquired based on fair values at the acquisition dates for our fiscal 2023, 2022 and 2021 acquisitions.


	Fiscal Year 2023(1)		Fiscal Year 2022		Fiscal Year 2021(2)
(dollars in thousands)	All Acquisitions		Other Acquisitions (Excluding Cantel)		Key Surgical		Other Acquisitions
Cash	$	—	$	—	$	12,615	$	9,159
Accounts receivable	2,405		—		13,967		9,621
Inventory	12,342		—		21,414		22,123
Property, plant, and equipment	2,131		—		6,030		26,363
Lease right-of-use assets, net	667		—		4,907		4,420
Other assets	177		—		6,680		3,378
Intangible assets (2)	27,576		1,578		356,999		28,188
Goodwill	7,024		1,602		527,675		42,808
Total assets	52,322		3,180		950,287		146,060
Current liabilities	(2,007)		(34)		(21,599)		(28,245)
Non-current liabilities	(473)		—		(62,870)		(9,704)
Total liabilities	(2,480)		(34)		(84,469)		(37,949)
Net assets	$	49,842	$	3,146	$	865,818	$	108,111

(1) Purchase price allocation is still preliminary as of March 31, 2023 for certain acquisitions, as valuations have not been finalized, pending further analyses of the significant drivers of fair value.

(2) The Fiscal 2021 amount includes $315,575, related to the fair value of the Customer relationships intangible asset obtained in the acquisition of Key Surgical. The estimation of fair value was determined under an income approach using discounted cash flows. The estimate requires assumptions including forecasted revenue growth rates, forecasted profit margins, and Customer attrition rates.