Cantel Medical Corp - Current report filing (8-K)
June 30 2008 - 11:14AM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported)
June 24, 2008
CANTEL MEDICAL CORP.
(Exact name of registrant as specified in its charter)
Delaware
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001-31337
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22-1760285
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(State or other jurisdiction
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(Commission
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(IRS Identification
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of incorporation)
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File Number)
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Number)
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150 Clove Road, Little Falls, New Jersey
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07424
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Address of principal executive offices)
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(Zip Code)
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Registrants
telephone number, including area code:
(973) 890-7220
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o
Written communications pursuant to Rule 425
under the Securities Act (17 CFR
230.425)
o
Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))
Item 2.05
Costs Associated with Exit or
Disposal Activities.
The
Companys Minntech Corporation subsidiary (Minntech) approved a program under
which it will
relocate all of its remaining
Dutch manufacturing operations to the United States.
The program
is part of the Companys continuing effort to
reduce operating costs and leverage the existing infrastructure of its Minntech
operations in Minneapolis.
The Company communicated the relocation
program to its employees on June 24, 2008.
The relocation of the Dutch manufacturing operations
will lead to the elimination of approximately 16 employee positions in the
Netherlands and the discontinuance of onsite material management, quality
assurance, finance and accounting, human resources and some customer service
functions. The relocation program should be completed by December 2008 and
is anticipated to result in an
nual pre-tax savings of over $1,000,000 through the more efficient
utilization of Minntechs US-based resources.
In connection with the relocation plan, based on
managements preliminary good faith estimate, the Company anticipates incurring
severance costs of approximately $550,000, asset impairment charges in the
range of $200,000 to $300,000 and inventory write-down and other associated
costs of approximately $200,000. Of those amounts, the Company anticipates that
approximately 50-60% will be recorded in the 4
th
quarter of FY 2008
and the balance recorded during the first four months of FY 2009. Additionally,
the Company intends to sell its facility in Holland. Although the timing and
financial effect of this sale are currently unknown, based on the appraised
value of the facility, the Company anticipates that it will generate a gain on
the sale of approximately $300,000.
Item 7.01
Regulation FD Disclosure.
A
copy of the press release announcing the Dutch relocation plan as well as other
financial matters is attached hereto as Exhibit 99.1 and is incorporated
herein by reference. The information in this Item 7.01 and Exhibit 99.1
shall not be deemed filed for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended, or otherwise subject to the liabilities of
that Section, nor shall it be deemed incorporated by reference into any filing
under the Securities Act of 1933, as amended, except as expressly set forth by
specific reference in such filing.
Item 9.01
Financial Statements, Pro-Forma
Financial Information and Exhibits
(c) Exhibit 99.1
- Press release of Registrant dated June 30, 2008.
CAUTIONARY STATEMENT CONCERNING
FORWARD-LOOKING STATEMENTS
All
statements in this Form 8-K that do not directly and exclusively relate to
historical facts constitute forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements include (but are not limited to) statements regarding the expected
amounts of charges and annual savings resulting from the plan to relocate the
Dutch manufacturing operations to the United States and related actions and
other statements that may be identified by the use of the words anticipate, believe,
estimate, expect, intend, and similar expressions. These forward-looking
statements are only predictions and represent the Companys current intentions,
plans, expectations, and beliefs, and are subject to risks, uncertainties, and
other factors, many of which are beyond the control of the Company, that may
cause actual results to differ materially from those anticipated. Certain of
such risks and uncertainties are identified in the Companys reports filed with
the Securities and Exchange Commission.
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
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CANTEL MEDICAL CORP.
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By:
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/s/ Andrew A. Krakauer
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Andrew A. Krakauer
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President
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Dated:
June 30, 2008
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