|SureStore endoscope storage and transportation set--Courtesy of Medical Innovations|
Infection prevention and control player Cantel Medical ($CMN) will purchase U.K. startup Medical Innovations Group for $79.5 million in cash. The acquisition adds a recently launched endoscope storage system as well as single-use endoscopy consumables, mobile cart systems and patient transport products.
The deal comes as endoscopes, and their subsegment duodenoscopes, remain under scrutiny by the FDA and healthcare providers as an ongoing source of bacterial contamination between patients after their reuse. Medical Innovations has a short-term scope transport system, CleanaScope, and a long-term endoscope storage system, SureStore, both of which address ensuring the safety of reusable endoscopes.
"Medical Innovations' presence in over 80% of U.K. hospitals represents a significant opportunity for Cantel Medical to drive additional growth in the U.K. market," said Cantel President and COO Jorgen Hansen in a statement. The heads of Medical Innovations, David Mason and Paul Stoner, are slated to remain to lead the business.
Medical Innovations had first half revenues of $28.1 million with an adjusted EBITDA of $7.6 million for that period. The acquisition is expected to be accretive to Cantel's non-GAAP EPS in its fiscal year ending July 31.
"Ensuring the safe transport, storage and separation of reprocessed and contaminated endoscopes throughout the healthcare setting is a key component of leading infection prevention and control protocols," David Hemink, President of Cantel's Medivators Endoscopy business, said in prepared remarks.
"The addition of Medical Innovations to the Medivators Endoscopy portfolio provides us with a market leading endoscope storage and transport system, and the ability to leverage existing sales channels, particularly in the US and other direct markets, to further accelerate growth," he concluded.
Cantel was up more than 1% in early trading on the news. It has gained almost 20% this year to hit a market cap of $2.1 billion.
- here is the announcement