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Cantel Medical Corp. Message Board

  • eperson02 eperson02 Oct 13, 2005 11:47 PM Flag

    For the quarterly period ended April 30

    The dialysis industry has been undergoing significant consolidation through the acquisition by certain major dialysis chains of smaller chains and independents. In December 2004, DaVita Inc.(�DaVita�), the second-largest dialysis chain in the United States, announced that it entered into a definitive agreement to acquire the U.S. renal care business of Gambro Healthcare, Inc.(�Gambro�). In addition, in May 2005, Fresenius Medical Care AG (�Fresenius�), the largest dialysis chain in the United States and a provider of single-use dialyzer products, announced that it entered into an agreement to acquire Renal Care Group, Inc.(�RCG�). DaVita, Gambro, and RCG are significant customers of the Company�s dialysis reuse products. If Fresenius�s acquisition is consummated, and if Fresenius converts all or substantially all of the dialysis clinics of RCG into single-use facilities, the Company�s sales of dialysis products could be adversely affected. In addition, the consolidation of dialysis providers could result in greater buying power by the larger resulting entities and thereby a reduction in the Company�s net sales due to reduced average selling prices of dialysis products. However, given the uncertainty of the post-acquisition operating strategies with respect to these two transactions, the Company is currently unable to determine the impact on its future sales of dialysis products and services.

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