Acquisition of Italian manufacturer of high level disinfectant chemistries and automated endoscope reprocessors adds key international strategic capabilities to Cantel Medical
LITTLE FALLS, N.J., Nov. 4, 2014 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN) today announced that it acquired International Medical Service S.r.l, or IMS, for a purchase price of €19.6 million in cash consideration. Located in Pomezia, Italy, IMS is a leading manufacturer of high-level disinfectant chemistries used in automated endoscope reprocessors (AERs) as well as other infection prevention and control chemistries used in healthcare and dental markets. In addition, IMS is a manufacturer of high-quality AERs and holds leading share in the Italian AER market. IMS has an employee base of approximately 60 individuals including a complete sales and service team for the Italian market as well as a robust engineering group.
For the twelve months ended December 31, 2013, IMS had unaudited revenues and earnings before interest, taxes, depreciation and amortization (on a US GAAP adjusted basis) of approximately €10.8 million and €2.7 million, respectively. Through focused efforts to grow the core Italian business while expanding sales of the IMS AER platform internationally, Cantel expects this business to show meaningful sales and profit growth over the next several years. Cantel anticipates the acquisition to be neutral to US GAAP earnings per share in the fiscal year ending July 31, 2015 and accretive thereafter. This acquisition will be integrated into the Medivators business unit and will be reported as part of the Endoscopy segment.
"The addition of IMS to our Medivators Endoscopy segment compliments this business with the most competitive global AER portfolio and adds key global R&D and manufacturing capabilities to our organization," said Jorgen Hansen, President of Medivators and COO of Cantel Medical. "We look forward to manufacturing both IMS' line of chemistries as well as Medivators' range of infection prevention chemistries at the IMS facility for sale throughout the European continent."
Andrew Krakauer, President and CEO of Cantel Medical said, "As we continue to target significant growth of our core businesses in international markets, the addition of high-quality manufacturing as well as direct sales and service teams in key geographies is an important step toward achieving our objectives. The acquisition of IMS represents our second major international acquisition in the last four months following our PuriCore International acquisition in the United Kingdom this past summer, and these complimentary transactions reflect our ongoing commitment to our international growth strategy. We welcome the entire IMS workforce to the Cantel Medical family, and we look forward to working together toward achieving the full potential of Cantel Medical."
About Cantel Medical Corp.
Cantel Medical is a leading global company dedicated to delivering innovative infection prevention and control products and services for patients, caregivers, and other healthcare providers which improve outcomes, enhance safety and help save lives. Our products include specialized medical device reprocessing systems for endoscopy and renal dialysis, advanced water purification equipment, sterilants, disinfectants and cleaners, sterility assurance monitoring products for hospitals and dental clinics, disposable infection control products primarily for dental and GI endoscopy markets, dialysate concentrates, hollow fiber membrane filtration and separation products, and specialty packaging for infectious and biological specimens. Additionally, we provide technical service for our products. For further information, visit the Cantel website at www.cantelmedical.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties, including, without limitation, the risks detailed in Cantel's filings and reports with the Securities and Exchange Commission. Such forward-looking statements are only predictions, and actual events or results may differ materially from those projected or anticipated.
SOURCE Cantel Medical Corp.
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