Cantel Medical Corp, Little Falls, NJ, a company specializing in instrument reprocessing and infection prevention products and services, announced an agreement to acquire Hu-Friedy Mfg Co, Chicago, a manufacturer of instruments and instrument reprocessing workflow systems serving the dental industry,
Cantel is acquiring Hu-Fried 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.
According to a press release from Cantel, the acquisition of Hu-Friedy will create a comprehensive company offering infection prevention, instrument, and instrument management solutions in the dental segment, and accelerate Cantel’s strategy to be the leading global provider of infection prevention and reprocessing workflow solutions and education in key end markets.
“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.”
Cantel plans to utilize Hu-Friedy’s sales and customer care team, as well as its marketing organization, to enhance its commercial and customer engagement capabilities within the dental industry, which is expected to enable long-term growth. In addition, Hu-Friedy’s education and training offerings, established presence in dental schools and continued work and engagement with key opinion leaders is expected to enable the combined business to provide a differentiated education and broad solution-based offering to the dental industry.
Ron Saslow and Ken Serota, president of Hu-Friedy, will lead the combined dental business post-closing. Gary Steinberg, who 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.