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CANTEL INDUSTRIES, INC., ANNOUNCES SALE OF OFFICE SEATING DIVISION AND NEW CREDIT FACILITY

 FAIRFIELD, N.J., Nov. 2 /PRNewswire/ -- Cantel Industries, Inc. (NASDAQ: CNTL), reported that it has consummated the sale of the business and assets of its Charvoz-Dauphin Office Seating Divisions located in the United States and Canada to affiliates of Dauphin Office Interiors, the manufacturer of the office seating products, for $3,050,000, subject to adjustment based upon the calculation of the net asset value of the divisions as of the closing date.
 The company used a substantial portion of the proceeds of the sale to repay all of its outstanding bank indebtedness in the United States and redeem all of its outstanding Series A Preferred Stock, held by Chemical Bank and The Bank of New York. In connection with these transactions, the company issued 133,950 shares of common stock to the banks.
 The company also announced that it entered into a new revolving credit facility, through its wholly owned Canadian subsidiary, Carsen Group Inc., with the National Bank of Canada, whereby the company may borrow up to $7.5 million secured primarily by the company's accounts receivable and inventories.
 James P. Reilly, president and chief executive officer of the company, stated that "the sale of the seating divisions, a major step in our overall strategic plan, will allow us to focus our full attention and resources on our principal business activities, the marketing, distribution and service of medical instruments, precision instruments and industrial, and consumer products in Canada." Mr. Reilly further stated, "The sale of the seating division and the repayment of our outstanding bank indebtedness result in a significant increase in the company's net worth and should improve the profitability of the company in the future."
 Mr. Reilly added: "We intend to continue adding additional product lines to our existing Canadian distribution businesses with emphasis on our medical division. In the United States, where we have a net operating loss carryforward of approximately $10.5 million we intend to explore acquisition opportunities which would contribute to the future growth of the company and the continued enhancement of shareholder value."
 -0- 11/2/93
 /CONTACT: James P. Reilly, president and chief executive officer of Cantel Industries, Inc., 201-227-6500/
 (CNTL)


CO: Cantel Industries, Inc. ST: New Jersey IN: SU:

WB-TW -- NY052 -- 9620 11/02/93 11:49 EST
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Publication:PR Newswire
Date:Nov 2, 1993
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