Cantel Medical aims for mid twos leverage by end of fiscal year 2021

By Devika Patel

Knoxville, Tenn., Sept. 23 – Cantel Medical Corp. plans to get its net debt to adjusted EBITDA leverage ratio down to the mid twos by the end of fiscal 2021.

The company’s leverage ratio was 1.08x as of July 31, but, as previously reported, it expects its pro forma net leverage to be about 3.75x when it closes on its planned acquisition of Hu-Friedy Mfg. Co. this quarter.

“We plan on using accretive free cash flow from Q3 to get us back to the mid twos (leverage ratio) by the end of 2021, and then, obviously, any capital would be deployed to deleveraging the balance sheet as quickly as possible,” senior vice president and chief financial officer Shaun Blakeman said Monday on the company’s earnings conference call for the fiscal 2019 fourth quarter and year ended July 31.

Cash and cash equivalents were $44.54 million as of July 31, compared to $94.1 million as of July 31, 2018.

Long-term debt was $220.85 million as of July 31, compared to $187.3 million as of July 31, 2018.

At the end of the quarter, gross debt was $233 million and net debt was $188.5 million.

Based in Little Falls, N.J., Cantel Medical makes infection prevention and control products and services for the health-care field.

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