Cantel Medical to purchase PuriCore International for US$27m
Will enable infection protection product company to expand into the UK and continental Europe
Cantel Medical is to buy PuriCore International for US$26.9m in cash.
PuriCore International, a subsidiary of PuriCore plc, is a Stafford, UK-based provider of automated endoscope reprocessors, endoscope drying and storage cabinets, chemistry and consumables and maintenance and validation services. The company employs 120 people, including a sales and service team and has facilities in Stafford and Clevedon, North Somerset.
Cantel, headquartered in Little Falls, New Jersey, US, provides infection prevention products and services for patients, carers and healthcare providers. The company's products include medical device reprocessing systems, advanced water purification equipment, disinfectants and sterility monitoring products.
The deal will allow Cantel to expand its reach and capabilities in international markets with a well-established business in the UK and provide a platform for future expansion in the UK and continental Europe.
For the 12 months to 31 December, 2013, PuriCore International reported revenues and EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately $25m and $3m, respectively.
Cantel said it expects the business to show 'significant sales and profit growth over the next several years'.
'The PuriCore endoscopy business has a highly accomplished team, a complimentary product portfolio and a well-established customer base in the UK market,' said Jorgen Hansen, President of Medivators and COO of Cantel Medical.
'This acquisition will bring to the Medivators portfolio a state of the art pass-through AER platform which we believe is critical to our continued success in the UK and Europe.'
Andrew Krakauer, President and CEO of Cantel Medical, added: 'The acquisition of the PuriCore endoscopy business is an important step in our effort to make Cantel Medical a truly global company.'
The transaction will require shareholder approval as well as other customary closing conditions. It is expected to close on or about 30 June, 2014.
Upon closing, PuriCore International will be integrated into Cantel's Medivators business and its results will be reported as part of the company's Endoscopy operating segment.
