Cantel Medical Acquires SPSmedical Supply
CANTEL MEDICAL (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 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.
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