Cantel Medical to absorb dental instrument company Hu-Friedy in $725mn deal

By hotmaillogin

Based in Little Falls, New Jersey, Cantel Medical Corporation is a leading provider of infection prevention products and services in the healthcare market. The company, which specializes in endoscopy, water purification and filtration, and single-use infection prevention products (including face masks, sterilization pouches, towels and bibs, tray covers, saliva ejectors, germicidal wipes, plastic cups and disinfectants) is primarily active in the dental industry. 

Today, Cantel announced plans to expand its footprint in the market with the purchase of Hu-Friedy, a 111 year old manufacturer of instruments and instrument reprocessing workflow systems serving the dental industry.

The deal will see Cantel acquire Hu-Friedy (a privately-held company) for a cash and stock consideration of US$725mn, with up to an additional $50mn in earnout payments payable in cash and stock conditional on the achievement of commercial milestones in the first eighteen months after closing. 

While this sum is almost $100mn in excess of Cantel’s gross revenue in 2018, there are several factors that will help ease the strain of such a large payment. First, due to favorable tax circumstances created by the acquisition, Cantel is expected to save around $100mn in taxes from the deal, making the net purchase price closer to $625.

The combination is expected to generate annual cost synergies of at least $10 million by the third year following closing of the transaction.


"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."


Featured Articles

Top 10 wealthiest billionaires in the US

Business Chief provides a rundown of the top 10 richest billionaires in the US based on the most recent Forbes 400 list, which is published every year

Top 10 easiest countries in the world to do business

Business Chief takes a look at the top 10 places in the world to do business, according to TMF Group's Global Business Complexity Index (GBCI) for 2023

Patagonia Chair Charles Conn on becoming an imperfectionist

Entrepreneur and Patagonia Chair Charles Conn talks to Business Chief about rethinking strategy amid uncertainty, and why an imperfectionist approach works

Top 10 most valuable brands in the world – Amazon to TikTok

Corporate Finance

Four priorities for new Twitter CEO Linda Yaccarino

Leadership & Strategy

Top 10 shifts transforming organisations – McKinsey & Co

Leadership & Strategy