Cantel Medical Acquires SPSmedical Supply for $32.5 Million Cash
LITTLE FALLS, N.J., Nov. 2, 2012 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN), through its Crosstex International subsidiary, has further expanded its sterility assurance monitoring business through the acquisition of SPSmedical Supply Corp. Based in Rochester, NY, SPSmedical is a leading manufacturer and provider of biological and chemical indicators for sterility assurance monitoring services in the acute-care, alternate-care and dental markets. SPS offers a wide-array of products and services that enable healthcare facilities to safely and accurately monitor and verify their sterilization practices and protocols.
For the latest twelve months, SPSmedical generated revenue and adjusted EBITDA[1] of $17.5 million and $4.3 million, respectively. The purchase price was $32.5 million in cash. Cantel has also purchased the facility utilized by the SPSmedical business in Rochester, NY for $3.5 million in cash. The transaction is expected to be accretive to Cantel's earnings per share in fiscal year 2013 and beyond.
Gary Steinberg, President and CEO of Crosstex said, "As a leading provider of sterility assurance monitoring services and products to the acute-care and alternate-care markets, SPSmedical is the perfect complement to our ConFirm brand biological monitoring business. SPS is recognized as an expert in instrument sterilization and reprocessing protocols, and is a highly respected provider of education programs, personnel training and healthcare facility audit services. SPS is a strong platform from which Crosstex can expand its global presence as a leader in healthcare infection prevention and control."
Charles Hughes, General Manager of SPSmedical, and newly appointed Cantel Vice President of Infection Prevention Consulting Services commented, "We see great opportunity to continue the growth of SPSmedical, and Cantel is the perfect partner to help us achieve those goals. SPSmedical, Crosstex and Cantel all share the same commitment to providing high quality products and services for infection prevention and control. I am incredibly proud of the accomplishments of our company, and I am thankful to the entire SPSmedical team. We are very excited to bring this business to the next level in our partnership with Cantel and Crosstex."
Andrew Krakauer, President and CEO of Cantel Medical added, "I am highly impressed with the employees, operations and overall quality of the SPSmedical business. A robust sterility assurance protocol is the bedrock of an effective infection prevention and control program in hospitals and healthcare settings. The addition of SPSmedical strengthens the strategic position of Cantel Medical Corp. as a leader in infection prevention and control solutions.
I am very excited that Chuck and Nancy Hughes as well as John Hughes and Mariann Hughes have entered into multi-year agreements and will continue to lead SPSmedical. Chuck Hughes is a world renowned expert on sterilization and instrument reprocessing for the prevention of healthcare associated infections. In his new role at Cantel, Chuck will be able to apply his expertise across the entire Cantel family of companies to further enhance our sterility and reprocessing protocols, bolstering our leadership in the infection prevention and control industry."
About Crosstex International
A subsidiary of Cantel Medical Corp., Crosstex, founded in 1953, has its headquarters and major manufacturing operations in Hauppauge, New York. Sold throughout the world, Crosstex branded and private label products include sterilization packaging and assurance products and services, face masks, patient towels and bibs, disinfectants, germicidal wipes, hand care products, gloves, and protective eyewear. For further information, visit the Crosstex website at http://www.crosstex.com.
About Cantel Medical Corp.
Cantel Medical Corp. (NYSE:CMN) is a leading provider of infection prevention and control products in the healthcare market. Our products include water purification equipment, sterilants, disinfectants and cleaners, specialized medical device reprocessing systems for endoscopy and renal dialysis, disposable infection control products primarily for dental and GI endoscopy markets, dialysate concentrates and other dialysis supplies, hollow fiber membrane filtration and separation products for medical and non-medical applications, and specialty packaging for infectious and biological specimens. We also provide technical maintenance for our products and offer compliance training services for the transport of infectious and biological specimens.
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.
[1] Earnings before interest, taxes, depreciation and amortization, adjusted for extraordinary and unusual items.
SOURCE Cantel Medical Corp.