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Cantel Medical Corp. announces that it has acquired Medical Innovations Group Holdings Limited for $79.5 million in cash consideration. Medical Innovations, a UK-based medical device company, is a leading provider of endoscope storage and transport systems in the UK and internationally. Through its market leading short-term scope transport system, CleanaScope®, as well as its recently launched novel SureStore® long-term endoscope storage system, Medical Innovations is the global leader in providing high-quality infection prevention solutions related to the safe transport and storage of endoscopes throughout the healthcare setting. In addition to its endoscope transport portfolio, Medical Innovations sells single-use endoscopy consumables, high-quality mobile cart systems and patient transport solutions.
For the latest 12 months ending June 30, 2015, Medical Innovations had reported revenues and adjusted earnings before interest, taxes, depreciation and amortization of $28.1 million and $7.6 million, respectively, at current exchange rates. Driven by continued strong sales growth, Cantel Medical anticipates the acquisition to be accretive to Non-GAAP earnings per share in the fiscal year ending July 31, 2016 and beyond, and accretive to GAAP earnings per share in the fiscal year ending July 31, 2017 and beyond.
With the acquisition of Medical Innovations' product portfolio, Cantel Medical further enhances its leadership position as the foremost provider of infection prevention and control (IP&C) solutions in the gastrointestinal (GI) endoscopy market. Medical Innovations' suite of endoscope storage and transport solutions is highly complementary to our existing portfolio of leading endoscopy infection prevention and control products, providing the company with the most comprehensive endoscope IP&C management system in the industry.
"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," says David Hemink, president of Medivators Endoscopy. "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."
Jorgen Hansen, president and COO of Cantel Medical says, "We are continuing our strategy of driving sustainable growth through the expansion of our global presence, the introduction of new products and the execution of strategic acquisitions. Medical Innovations' presence in over 80% of UK hospitals represents a significant opportunity for Cantel Medical to drive additional growth in the UK market. We are excited that the owners of Medical Innovations, David Mason and Paul Stoner, will remain in leadership roles in the combined business to continue driving the ongoing success of our expanded Endoscopy platform."
Source: Cantel Medical Corp.