Posted: July 31, 2019 / Source: PR Newswire
Edited by Dentaltown staff
LITTLE FALLS, N.J. and CHICAGO—Cantel Medical, a provider of instrument reprocessing and infection prevention products and services, announced that it has entered into a definitive agreement to acquire privately-held Hu-Friedy, a 111-year-old manufacturer of instruments and instrument reprocessing workflow systems serving the dental industry. After closing, Cantel will combine Hu-Friedy with its dental division, Crosstex, a provider of infection prevention, sterility assurance, dental water management and conscious sedation systems.
Cantel is acquiring Hu-Friedy for $725 million in upfront cash and stock consideration, and up to $50 million in earnout payments payable in cash and stock conditional on the achievement of commercial milestones in the first 18 months after closing. The transaction structure is anticipated to result in tax benefits to Cantel presently valued at more than $100 million, which would result in a net purchase price of $625 million for the upfront consideration and up to approximately $675 million in consideration including potential earnout payments.
"The combination of our two dental businesses provides a clear and immediate opportunity to become the leading provider of a 'Complete Circle of Protection' offering for instrument reprocessing workflow and infection prevention and compliance solutions in the dental industry," said George Fotiades, president and chief executive officer of Cantel. "By bringing together our highly complementary dental portfolios, we will create a business that is uniquely positioned to address the most critical workflow needs of our customers while improving patient care. Hu-Friedy brings us the scale, commercial capabilities and portfolio breadth to enable our dental business to be a significant driver of long-term profitable growth for Cantel."
"We are excited to join forces with Cantel and are looking forward to the opportunities this combination will bring for our customers, employees and other stakeholders," said Ron Saslow, chairman and chief executive officer of Hu-Friedy. "As a leader in dental instrumentation and instrument management solutions, Hu-Friedy's combination with the Cantel portfolio of leading infection prevention dental consumables is a perfect match to further enhance our ability to serve our dental customers."
Ron Saslow and Ken Serota, president of Hu-Friedy, will lead the combined dental business post-closing. Gary Steinberg, who has built the Cantel dental division since the acquisition of Crosstex, will assist in the post-close transition and integration of these two businesses and will retire at the end of the calendar year.