Pittsburgh-based Evoqua Water Technologies announced Monday that it has entered into an agreement to acquire the assets of the renal business operated by Mar Cor Purification and Cantel Medical, subsidiaries of STERIS Plc.
Evoqua said it will acquire the business’ assets for $196.3 million.
“Mar Cor’s expertise and extensive network are a natural fit with Evoqua’s proven customer-centric water treatment solutions and service,” said Evoqua Chief Executive Officer Ron Keating. “This addition will further strengthen our service footprint in North America while expanding our offerings in the healthcare market.”
As part of the agreement, the acquired business, headquartered in Plymouth, Minn., and its 27 service and regeneration facilities in the United States and Canada, will provide Evoqua with significant technical expertise in designing, building and servicing high-purity water treatment systems. Additionally, the business’ installed base and large footprint is anticipated to provide Evoqua with a steady stream of service and aftermarket revenues.
The company said the transaction is expected to close during Evoqua’s second quarter of fiscal 2022, ending March 31. The deal is still pending regulatory review and other closing conditions. At close, the business will become part of Evoqua’s Integrated Solutions and Services segment.
Evoqua said it anticipates that the acquired business will generate annualized revenues of approximately $180 million, and adjusted EBITDA of approximately $27 million before synergies. The purchase will be funded through cash and revolving credit.