Cantel Medical has acquired Accutron, which manufactures nitrous oxide delivery systems and single-use nasal masks. Cantel handed over approximately $52.5 million in cash in the deal.
“The addition of Accutron's portfolio of high quality, conscious sedation single-use nasal masks and equipment will further differentiate our infection prevention product offering,” said Jorgen Hansen, president and CEO of Cantel. “Single-use nasal masks are critical to eliminating cross-contamination of infectious pathogens between patients, and remains consistent with our strategy of providing customer solutions aimed at infection prevention and patient safety."
Cantel offers products and services aimed at infection prevention. The company “anticipates the acquisition to be accretive to GAAP and Non-GAAP earnings per share in the fiscal year ending July 31, 2017 and beyond,” Cantel said in the announcement. Accutron brought in $20.5 million in revenues for the calendar year ending in December 2015.
The acquisition should help Cantel expand on its dental portfolio in Crosstex International, its healthcare disposables unit. The aim is for Accutron to help add a single-use disposable product line. This is Cantel’s first step into the dental equipment market.
Cantel’s acquisitions have given them a boost this year, according to an earnings call that took place back in June 2016. Accutron isn’t the first dental-focused acquisition for Cantel in 2016, as the company scooped up North American Science Associates’ (NAMSA) sterility assurance products division back in February.
“As we look forward we remain confident about the growth potential of the Healthcare Disposables business, driven by our increasing presence in the Sterility Assurance market now including the NAMSA acquisition, our entrance into the high growth Dental unit Waterline Disinfection market as well as for new opportunities in hospital and alternate care markets and in this market sales of Rapicide OPA/28 high level disinfectant in the United States more than doubled versus the prior year,” Andrew Krakauer, then CEO of Cantel, said during the June call. Krakauer handed the reins over to Hansen on June 31, 2016. At the time of the call, Hansen was president and chief operating officer at the company.
The company plans to continue these strategic acquisitions moving forward, according to Hansen. “Overall we feel confident in our growth trends and see great opportunities for our businesses to grow organically. In addition, we will continue our prudent strategy of identifying, executing and integrating acquisitions worldwide,” Hansen said during the June call. “We're actually pursuing opportunities for acquisitions in all three of our major businesses as well as in new infection and prevention categories.”
- here's the press release
- here's the transcript from the June earnings call
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