CANTEL MEDICAL CORP. (NYSE: CMN), has entered into a definitive agreement with North American Science Associates, Inc. (NAMSA) to acquire NAMSA's Sterility Assurance Monitoring Products division for $13.5 million in cash consideration. For the year ending December 31, 2015 this business had adjusted sales of $5.7 million. The Sterility Assurance Monitoring Products division manufactures a broad suite of high-quality biological and chemical indicators which are used to accurately monitor the effectiveness of sterilization processes. These indicators are designed primarily for the industrial segment serving medical device, life science and other manufacturers, representing a new end-market for Cantel's Healthcare Disposables segment.
This transaction is expected to be neutral to GAAP earnings per share and slightly accretive to Non-GAAP earnings per share in fiscal year ending July 31, 2016 and accretive to both GAAP and Non-GAAP earnings per share in fiscal year 2017 and beyond. NAMSA's sterility assurance products will be integrated into the Crosstex product portfolio and reported in the Healthcare Disposables segment.
Gary Steinberg, President and CEO of Crosstex said, "This acquisition not only allows us to expand our sterility assurance product offering, but also broadens our presence into the important industrial market segment. We look forward to delivering to these customers a high-quality sterility assurance product offering they have come to expect from the NAMSA product line, and are excited to provide additional product solutions to these customers with Crosstex's complete infection prevention and control product portfolio."
Subject to customary closing conditions, Cantel Medical expects the transaction to close in the third quarter of Fiscal Year 2016.
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