Cantel Medical Corp. is acquiring a manufacturer of instruments for the dental industry, it announced Tuesday.
The Little Falls-based health care products firm said it has entered into a definitive agreement to purchase Hu-Friedy Mfg. Co. for $725 million in cash and stock. The deal includes up to $50 million in earnout payments.
Hu-Friedy is based in Chicago. It had revenue of $214 million for the 12 months ending May 31.
“The combination of our two dental businesses provides a clear and immediate opportunity to become the leading provider of a ‘Complete Circle of Protection’ offering for instrument reprocessing workflow and infection prevention and compliance solutions in the dental industry,” George Fotiades, CEO and president, Cantel, said. “By bringing together our highly complementary dental portfolios, we will create a business that is uniquely positioned to address the most critical workflow needs of our customers while improving patient care. Hu-Friedy brings us the scale, commercial capabilities and portfolio breadth to enable our dental business to be a significant driver of long-term profitable growth for Cantel.”
The combination will enhance Cantel’s commercial and customer engagement capabilities in the dental industry. It will also create a provider of comprehensive infection prevention and instrument and instrument management solutions, Cantel said.
“We are excited to join forces with Cantel and are looking forward to the opportunities this combination will bring for our customers, employees and other stakeholders,” Ron Saslow, chairman and CEO of Hu-Friedy, said. “As a leader in dental instrumentation and instrument management solutions, Hu-Friedy’s combination with the Cantel portfolio of leading infection prevention dental consumables is a perfect match to further enhance our ability to serve our dental customers.”
Saslow and Ken Serota, president of Hu-Friedy, will lead the combined dental business once the deal has closed. Gary Steinberg, who built Cantel’s dental division, will assist in the post-close transition and integration of the two businesses and will retire at the end of the year.
Perella Weinberg Partners L.P. served as financial advisor and Wachtell, Lipton, Rosen & Katz served as legal advisor to Cantel. Moelis & Company LLC served as financial advisor and Latham & Watkins LLP served as legal advisor to Hu-Friedy.