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UK's Synergy Health to buy SRI Surgical for $25.1M

The Associated Press

British healthcare services provider Synergy Health PLC is buying SRI Surgical Express Inc., which provides basins, gowns and instruments needed in surgeries, for about $25.1 million, to help it expand in the U.S.

The deal, which has been approved by the boards of both companies, comes nine months after SRI Surgical said that it would explore strategic options to boost shareholder value, including a possible sale of the company.

Synergy plans to acquire all of SRI Surgical's shares for $3.70 per share. The offer represents a 2 discount to the company's Wednesday closing stock price of $3.77 per share.

SRI Surgical's customers will benefit from the deal, according to the company's CEO Gerald Woodard, because both SRI Surgical and Synergy have extensive experience in sterilizing instruments and materials for medical device companies, hospitals and others in the healthcare industry.

Synergy said it expects a tender offer for SRI Surgical's shares to close on July 16.

Shares of SRI Surgical, which is based in Tampa, Fla., fell 9 cents, or 2.4 percent, to $3.68 in morning trading.