Cantel's Mar Cor Buys Siemens Unit - Analyst Blog
March 28 2013 - 2:15PM
Zacks
In an attempt to expand its North
American footprint, Cantel Medical Corp. (CMN), a
leading provider of infection prevention and control products, came
up with its new acquisition deal. Recently Mar Cor Purification,
Inc., a subsidiary of Cantel acquired Siemens Water Technologies’
hemodialysis water unit. Financial terms of the deal were not
disclosed.
This is Mar Cor’s second
acquisition this year since it acquired Eagle Pure Water Systems,
Inc. on Jan 7, 2013. Cantel expects this acquisition to be slightly
accretive to its earnings in fiscal 2013 and beyond.
In 2012, Mar Cor generated revenue
of $9 million and had a customer base of 600 across the United
States and Canada. According to Cantel, apart from expanding in
North America, this acquisition will help the company to grow its
filtration and water purification business.
Cantel expects this acquisition to
fortify its position in the dialysis industry by providing water
purification products and services. Cantel noted that following
this acquisition, Mar Cor will be in a position to establish itself
across new regions and will increase productivity through current
operations. The company looks forward to enhance its customer base
and provide efficient customer service.
Based on Mar Cor’s advanced
heat-based disinfection water technology in infection prevention
and control, Cantel expects its water purification and filtration
segment to outperform in the industry.
Cantel’s products include
disinfectants and cleaners, specialized medical device reprocessing
systems for endoscopy and renal dialysis water purification
equipment, sterilants and hollow fiber membrane filtration and
separation products. The company also gives customer support in
form of technical maintenance and provides training for transport
and biological specimens.
Currently, Cantel carries a Zacks
Rank #3 (Hold). However, we are more positive about other stocks
such as Cyberonics Inc. (CYBX) and Given
Imaging Ltd. (GIVN), which carry a Zacks Rank #1 (Strong
Buy) as well as Atossa Genetics, Inc. (ATOS),
which carries a Zacks Rank #2 (Buy).
ATOSSA GENETICS (ATOS): Get Free Report
CANTEL MED CORP (CMN): Free Stock Analysis Report
CYBERONICS INC (CYBX): Free Stock Analysis Report
GIVEN IMAGING (GIVN): Free Stock Analysis Report
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