Cantel Medical has entered into a definitive stock purchase agreement to acquire PuriCore International, a wholly-owned subsidiary of PuriCore, for a purchase price of $26.9m in cash consideration.
With the upcoming launch of its next-generation pass-through automated endoscope reprocessor in Cantel’s fiscal first quarter, Cantel expects the business to show significant sales and profit growth over the next several years.
In purchasing PuriCore International, Cantel will significantly expand its reach and capabilities in international markets with a well-established operation in the United Kingdom and a platform for future expansion both in the UK as well as more broadly in continental Europe.
When combined with the full breadth of the Medivators product range, the Medivators/PuriCore offering will be the most comprehensive infection prevention and control portfolio for the GI suite in Europe.
Cantel Medical COO and Medivators president Jorgen Hansen said that this acquisition will bring to the Medivators portfolio a state of the art pass-through AER platform which we believe is critical to our continued success in the UK and Europe.
The transaction will require approval by a simple majority of the voting shareholders of PuriCore as well as other customary closing conditions. As of the signing of the definitive agreement, shareholders representing more than 50% of the outstanding share capital of PuriCore have entered into agreements supporting the proposed transaction.
The transaction is expected to close on or about 30 June 2014. Upon closing, PuriCore International will be integrated into the Medivators business and its results will be reported as part of Cantel Medical’s Endoscopy operating segment.