As the COVID-19 pandemic continues apace, Steris has moved to acquire Cantel Medical in a $4.6 billion deal for its portfolio of infection prevention products aimed at safeguarding endoscopic and dental procedures.
The cash and stock transaction comes in at $84.66 per share for Cantel, equivalent to its Jan. 11 closing price, amounting to about $3.6 billion in total equity value. The remaining $1 billion accounts for Cantel’s net debt and convertible notes.
“The last year has demonstrated more than ever the importance of innovative and comprehensive infection prevention and control solutions that protect healthcare providers and patients,” Cantel CEO George Fotiades said in the companies’ announcement.
Cantel brought in about $1 billion in revenue over its 2020 fiscal year by selling disposables used in endoscopy procedures such as single-use valves and irrigation tubing, as well as scope reprocessing systems, disinfectants and detergents through its Medivators business division.
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It also offers face masks, wipes, towels and bibs for dentists through its Crosstex International brand as well as water purification and equipment reprocessing systems for dialysis providers via Mar Cor Purification.
They will join Steris’ surgical and sterile processing equipment for operating rooms and ambulatory surgery centers—as well as equipment the company obtained through its recent acquisition of Key Medical, completed last November.
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“Together with Steris, we believe the value opportunity is compelling, both today and in a post-COVID world,” said Cantel’s chairman, Charles Diker, citing the combined company’s scale and range of product offerings.
Steris said it plans to fund the cash portion of the deal and repay a significant amount of Cantel’s existing debt, with about $2 billion of new debt and committed bridge financing. The deal is expected to close by the end of June.