STERIS announces definitive agreement to acquire Cantel Medical

Jan. 13, 2021

STERIS and Cantel Medical Corp announced that STERIS has signed a definitive agreement to acquire Cantel, through a US subsidiary.

Cantel is a global provider of infection prevention products and services primarily to endoscopy and dental customers. Under the terms of the agreement, STERIS will acquire Cantel in a cash and stock transaction valued at $84.66 per Cantel common share, based on STERIS’ closing share price of $200.46 on Jan. 11, 2021. This represents a total equity value of approximately $3.6 billion and a total enterprise value of approximately $4.6 billion, including Cantel’s net debt and convertible notes. The agreement has been unanimously approved by the Boards of Directors of both companies.

“We have long appreciated Cantel, which is a natural complement and extension to STERIS’ product and service offerings, global reach and Customers,” said Walt Rosebrough, President and Chief Executive Officer of STERIS.  “Combined, we will offer a broader set of Customers a more diversified selection of infection prevention and procedural products and services.”

Charles M. Diker, Chairman of the Cantel Board of Directors, has separately entered into a voting support agreement along with certain other entities collectively holding approximately 10 percent of Cantel’s outstanding shares. 

Mr. Diker said, “Together with STERIS, we believe the value opportunity is compelling, both today and in a post-COVID world, as the combined company will have the scale, breadth and depth to unlock substantial value that will drive further benefits for Cantel shareholders, Customers and all stakeholders.”

“We believe Cantel and STERIS are a perfect strategic fit, and this combination is a natural next step for our company, enabling us to accelerate progress on our Cantel 2.0 initiatives and drive enhanced value for shareholders and the healthcare providers and systems we support,” said George Fotiades, CEO of Cantel. “The last year has demonstrated more than ever the importance of innovative and comprehensive infection prevention and control solutions that protect healthcare providers and patients.”

This transaction brings together STERIS’ and Cantel’s franchises to create a stronger global business serving a broader set of Customers. Cantel’s largest business, its medical portfolio, will strengthen and expand STERIS’ endoscopy offerings, adding a full suite of high-level disinfection consumables, capital equipment and services, as well as additional single-use accessories. Cantel’s Dental business extends STERIS into a new customer segment where there is an increasing focus on infection prevention protocols and processes. Annual revenue for Cantel in its recent fiscal year ended July 31, 2020, was approximately $1 billion, with adjusted EBIT of approximately $134 million.

STERIS has the release