In an attempt to expand its North American footprint, Cantel Medical Corp. , a leading provider of infection prevention and control products, came up with its new acquisition deal. Recently Mar Cor Purification, Inc., a subsidiary of Cantel acquired Siemens Water Technologies’ hemodialysis water unit. Financial terms of the deal were not disclosed.
This is Mar Cor’s second acquisition this year since it acquired Eagle Pure Water Systems, Inc. on Jan 7, 2013. Cantel expects this acquisition to be slightly accretive to its earnings in fiscal 2013 and beyond.
In 2012, Mar Cor generated revenue of $9 million and had a customer base of 600 across the United States and Canada. According to Cantel, apart from expanding in North America, this acquisition will help the company to grow its filtration and water purification business.
Cantel expects this acquisition to fortify its position in the dialysis industry by providing water purification products and services. Cantel noted that following this acquisition, Mar Cor will be in a position to establish itself across new regions and will increase productivity through current operations. The company looks forward to enhance its customer base and provide efficient customer service.
Based on Mar Cor’s advanced heat-based disinfection water technology in infection prevention and control, Cantel expects its water purification and filtration segment to outperform in the industry.
Cantel’s products include disinfectants and cleaners, specialized medical device reprocessing systems for endoscopy and renal dialysis water purification equipment, sterilants and hollow fiber membrane filtration and separation products. The company also gives customer support in form of technical maintenance and provides training for transport and biological specimens.
Currently, Cantel carries a Zacks Rank #3 (Hold). However, we are more positive about other stocks such as Cyberonics Inc. (CYBX - Analyst Report) and Given Imaging Ltd. , which carry a Zacks Rank #1 (Strong Buy) as well as Atossa Genetics, Inc. (ATOS), which carries a Zacks Rank #2 (Buy).