Cantel Medical Corp. Reports Operating Results (10-K)
Cantel Medical Corp. has a market cap of $278.1 million; its shares were traded at around $16.5 with a P/E ratio of 14.2 and P/S ratio of 1.1. The dividend yield of Cantel Medical Corp. stocks is 0.6%. Cantel Medical Corp. had an annual average earning growth of 9.1% over the past 10 years.CMN is in the portfolios of Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, John Keeley of Keeley Fund Management.
Highlight of Business Operations: On October 6, 2010, our Mar Cor Purification subsidiary (Mar Cor) acquired from Gambro Renal Products, Inc. (GRP) and a Swedish-based affiliate of GRP (collectively, Gambro) certain net assets and the exclusive rights in the United States to manufacture and sell Gambros water treatment products used in the production of water for hemodialysis (Gambro Water or the Gambro Acquisition). Immediately following the acquisition, we commenced sales and service of all Gambro water products, components, parts and consumables solely intended for the United States market. The manufacturing of these products will be transitioned into our own manufacturing facility in Plymouth, Minnesota over the next few months. With an installed base of over 1,200 water equipment customers in the United States and annual pre-acquisition revenues of approximately $14 million (approximately 80% of such revenues are from one customer), the Gambro Acquisition is anticipated to expand our Water Purification and Filtrations annual business by approximately 19% in terms of sales, particularly with respect to product and service sales volumes in both existing and new dialysis clinics across the United States. Total consideration for the transaction, excluding transaction costs, was approximately $23,750,000, of which $3,100,000 will be paid in six quarterly payments ending April 2012. The Gambro Acquisition will be included in our Water Purification and Filtration operating segment. See Reporting Segments-Water Purification and Filtration and Note 3 to the Consolidated Financial Statements.
On June 1, 2010, Mar Cor acquired all of the issued and outstanding capital stock of Purity Water Company of San Antonio, Inc. (Purity), a private company with pre-acquisition annual revenues of approximately $2,300,000 based in San Antonio, Texas that designs, installs and services high quality, high purity water systems for use in laboratory, industrial, medical, pharmaceutical and semiconductor environments. Total consideration for the transaction was $2,014,000. The results of operations of Purity are included in our results of operations in fiscal 2010 subsequent to June 1, 2010 and are not included in any prior periods. Purity is included in the Water Purification and Filtration segment. Following the acquisition, Purity was merged with and into Mar Cor.
On July 31, 2009, we purchased substantially all of the assets of G.E.M. Water Systems Intl, LLC (G.E.M.), including the building housing its operations, for $4,468,000, including transaction costs. G.E.M, based in Buena Park, California, designs, installs and services high quality water and bicarbonate systems for use in dialysis clinics, hospitals and other healthcare facilities. The acquired business had pre-acquisition revenues of approximately $3,500,000. The results of operations of G.E.M. are included in our results of operations for the entire fiscal 2010 and are not included for any prior period, but the assets of G.E.M. are included in our Consolidated Balance Sheets as of both July 31, 2010 and 2009 (since the acquisition occurred on the final day of fiscal 2009). The principal reason for the acquisition was the strengthening of our sales and service presence and base of business in California with a significant concentration of dialysis clinics and healthcare institutions. The operating results of G.E.M. are included in our Water Purification and Filtration segment.
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