Cantel Expands its Life Sciences Portfolio through Acquisition of Stericycle's Controlled Environmental Solutions Business
Addition of clean room business enhances and strengthens Cantel's portfolio of infection prevention solutions
LITTLE FALLS, N.J., Aug. 3, 2018 /PRNewswire/ -- Cantel Medical Corporation (NYSE: CMD), announced today that it has acquired Stericyle, Inc.'s (Nasdaq: SRCL) Controlled Environmental Solutions business ("CES business") for a cash purchase price of $17.0 million on a cash-free and debt-free basis. The CES business, consisting of B&V Testing and Certco services, is a leading provider of testing and certification, environmental monitoring and decontamination services for clean rooms and other controlled environments to ensure safety, regulatory compliance and quality control.
For the calendar year ending December 31, 2017, the CES business reported revenues of $8.9 million. Cantel anticipates the acquisition to be accretive to non-GAAP earnings per share in the fiscal year ending July 31, 2019 and beyond, and accretive to GAAP earnings per share in the fiscal year ending July 31, 2020 and beyond.
The CES business is made up of highly specialized testing and certification services, control procedures and tailored decontamination technology for the clean room to ensure optimal performance of the environment and end-user compliance to highly regulated industry standards.
"We are pleased that the CES business is now part of Cantel and welcome their employees to our team. Their services are highly complementary to our current portfolio of sterilization and disinfection products, and enable us to expand the complete circle of protection product offerings in our Life Sciences portfolio," stated Jorgen Hansen, President and CEO. "We're excited about the attractive emerging market of clean room testing, certification and decontamination and are optimistic that this platform will position us well for meaningful growth in the future."
"This acquisition allows us to better serve customers in the clean room products and services market," said Curt Weitnauer, President of Cantel's Water Purification and Filtration Division. "By joining forces, we will enhance the value we provide to existing and future customers by coupling the CES Business' strong reputation for technical and service excellence with our expertise to deliver high-quality, and innovative infection prevention solutions."
Cantel 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. 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.
Company Codes: NYSE:CMD, NASDAQ-NMS:SRCL