Cantel Medical's Mar Cor Purification Subsidiary Acquires G.E.M. Water Systems
... Establishing a Nationwide Reach in Water Treatment
LITTLE FALLS, N.J. - August 3, 2009 - CANTEL MEDICAL CORP. (NYSE: CMN), through its Mar Cor Purification subsidiary, has continued the expansion of its water purification and filtration segment by purchasing the assets of Los Angeles-based G.E.M. Water Systems Int'l, LLC. G.E.M. designs, builds, installs and services high quality water equipment for dialysis clinics in the Western U.S. The acquired business had pre-acquisition revenues of approximately $3.5 million. This cash deal is expected to be slightly accretive to Cantel's earnings per share in the first year.
Curt Weitnauer, President of Mar Cor Purification, stated, "Adding G.E.M.'s strong brand name and strategic Western Region presence to Mar Cor's leadership position in medical water enables us to better serve our national customers and further expand our business. We will be adding an outstanding team and base of business in a highly desirable region - one with a great concentration of dialysis clinics and healthcare institutions. We expect to achieve incremental growth with the addition of Mar Cor's broad portfolio of products and services. Furthermore, the acquisition provides a foundation for a West Coast expansion of the Mar Cor service business."
Cantel's President and CEO, Andrew Krakauer, added, "Building atop the success of our acquisition of GE Water & Process Technologies' dialysis water business and other Mar Cor acquisitions, we are continuing to implement our strategy of creating a nationwide service network to meet the needs of our customers. The opportunity to achieve both top and bottom line synergies will strengthen our successful water purification and filtration business, which has continued to improve its performance year after year. I am very pleased with the leadership of our Mar Cor group, and we will continue to invest both organically and via acquisition in this business, which is now Cantel's largest reporting segment in annual revenue. The team has done an outstanding job bringing this deal to fruition."
