07:43 AM EDT, 04/11/2024 (MT Newswires) -- STERIS ( STE ) said Thursday it signed a deal to sell its dental business to Peak Rock Capital for $787.5 million in an equity transaction.

STERIS ( STE ) said it is eligible for additional earnout of up to $12.5 million from the sale, given that the dental segment reaches certain revenue targets in fiscal 2025.

The deal is expected to close in Q1 2025.

Proceeds of the sale will primarily be used to repay debt, STERIS ( STE ) said, adding that it expects the divestment to reduce interest expense by about $0.35 per diluted share. The company said the dental business will be reflected as discontinued operations in its Q4 and fiscal full-year 2024 results, when it will also provide a fiscal 2025 outlook reflecting the transaction.

Shares of the company were up 2.5% in recent Thursday premarket activity.

Price: 214.45, Change: +5.24, Percent Change: +2.5