Cantel Medical Elects to Distribute Its Medivators Systems on a Direct Basis in the United States
May 19 2006 - 8:30AM
Business Wire
Effective August 2, 2006, Minntech Corporation, a wholly owned
subsidiary of Cantel Medical Corp. (NYSE: CMN), will sell its
industry leading Medivators brand endoscope reprocessing equipment,
high-level disinfectants and consumables through its own U.S. sales
force. Minntech and Cantel have determined that it is in their best
long-term interests to control and further develop their own U.S.
distribution and, as such, not renew the exclusive Medivators U.S.
distribution agreement with Olympus America Inc. upon the
expiration of its term on August 1, 2006. With over 20 years of
design and manufacturing expertise, the Medivators' brand reflects
the broadest and most complete line of endoscope reprocessing and
disinfecting systems, high-level disinfectants, and related
consumables. These comprehensive offerings encompass Automated
Endoscope Reprocessors (ranging in size from tabletop units for
individual physicians to large hospital asynchronous equipment),
Rapicide(TM) high-level disinfectant and sterilant, Adaspor(R) cold
chemical sterilant sold outside the U.S., and a range of
accessories, filtration equipment, and other consumables. By the
close of 2005, there were more than 5,700 Medivators endoscope
reprocessors in use worldwide, of which one quarter have been
installed outside the United States. Since the 1996 signing of the
Olympus agreement, Medivators has employed and cultivated its own
U.S. Clinical Sales Support, Technical and Customer Service Teams,
Depot Maintenance and Service, as well as providing all Logistics
and Distribution Services for the Medivators/Olympus customer base.
This existing and fully developed infrastructure will continue to
be a critical factor in Medivators' new sales and service strategy.
Outside of the United States, the Medivators group has direct
sales, marketing, and service capabilities in the United Kingdom
and Holland, and sells through strong, independent distribution
partners in the rest of Europe, Asia, Australia, and Latin America.
With specific regards to the Canadian market, as disclosed on May
17, 2006, Minntech will be entering into a distribution agreement
with a newly formed, independent distribution company owned by two
executive officers of our Carsen Group subsidiary who will be
leaving the Company on July 31, 2006. During the seven-year period
following the expiration of the term of the distribution agreement
with Olympus on August 1, 2006, Olympus will have the option to
provide certain ongoing support functions to its existing customer
base of Medivators products, subject to the terms and conditions of
the agreement. In addition, Olympus may continue to purchase from
Minntech for resale in connection with such support functions,
Medivators accessories, consumables, and replacement and repair
parts, as well as Rapicide(R) disinfectant. Mr. Roy K. Malkin,
President and Chief Executive Officer of Minntech stated, "We are
very excited about building our direct sales and service
organization and having the flexibility to control our own destiny
and growth in the U.S. The Medivators brand name is well known and
well respected globally, and we will continue to lead through
product innovation and superb customer support. This is the right
time and the right strategy to rapidly build our product and
service offering, as well as forge new inroads into the hospital,
clinic, and physician settings." Mr. Malkin added, "Our nearly ten
year efforts of co-branding endoscope reprocessors with Olympus
have proven quite successful, and we sincerely appreciate all of
their endeavors to establish the Medivators produced reprocessing
systems as the market leader. We shall work closely with Olympus to
ensure a seamless transition of sales and service responsibilities,
and will continue our strong support of their efforts throughout
the post-agreement period." Cantel Medical Corp. is a leading
provider of infection prevention and control products in the
healthcare market. Our products include specialized medical device
reprocessing systems for renal dialysis and endoscopy, dialysate
concentrates and other dialysis supplies, disposable infection
control products primarily for the dental industry, endoscopy and
surgical products, water purification equipment, sterilants,
disinfectants and cleaners, hollow fiber membrane filtration and
separation products for medical and non-medical applications, and
specialty packaging for infectious and biological specimens. The
Company also sells scientific instrumentation products, provides
technical maintenance for its products and offers compliance
training services for the transport of infectious and biological
specimens. For further information, visit the Cantel web site at
www.cantelmedical.com, the Minntech website at www.minntech.com,
and the Medivators website at www.minntech.com/medivators/. This
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements involve a number of risks and uncertainties,
including, without limitation, the risks detailed in Cantel's
filings and reports with the Securities and Exchange Commission.
Such forward-looking statements are only predictions, and actual
events or results may differ materially from those projected or
anticipated.
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