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Deal Adds Water Treatment to Its Infection Prevention and Control Strategy
Cantel Medical Corp. as part of its strategic plan of expanding its infection prevention and control business, today announced its entry into the water treatment industry with the acquisitions of Mar Cor Services and The Biolab Group. The acquisitions, with a combined purchase price of approximately $16.3 million in cash (including assumption of debt), are expected to provide Cantel with additional combined revenues of approximately $20 million. Additional payments of up to $3 million will be payable if specified operating targets are achieved over the next three years. Both transactions, subject to standard terms and conditions, are expected to close in early August 2003 and be accretive in the 2004 fiscal year.
James P. Reilly, president and chief executive officer of Cantel, stated, "These two acquisitions will launch Cantel into another category in the growing area of infection control. The combination of these companies with our existing Minntech and Carsen operations provides for exciting and synergistic opportunities which our management team will aggressively pursue."
Reilly commented further, "Biolab, with exceptional engineering and manufacturing capabilities, will become our primary water treatment equipment supplier. We will be able to leverage Biolab's advanced equipment into Mar Cor's service and distribution network throughout the eastern half of the United States. These companies further reinforce our commitment and strength in dialysis, while simultaneously affording us with new opportunities in the pharmaceutical and biotechnology markets."