The purchase price for the net assets sold to Olympus was approximately $31,500,000, comprised of a fixed sum of $10,000,000 plus an additional formula-based sum of $21,500,000, of which $4,000,000 was paid prior to July 31, 2006 and $26,600,000 was paid on July 31, 2006. The balance of $900,000 is subject to adjustment based on final asset valuations and certain offsets to be determined during the first quarter of fiscal 2007. In addition, Olympus will pay Carsen a percentage (20%) of Olympus' revenues attributable to Carsen's unfilled customer orders as of July 31, 2006 that were assumed by Olympus at the closing. Such payments to Carsen (currently anticipated to be approximately $450,000) will be made following Olympus' receipt of customer payments for such orders. Net proceeds from Carsen's sale of net assets and the termination of Carsen's operations, after satisfaction of remaining liabilities and income taxes, are currently estimated to be approximately $22,000,000.
As a result of the foregoing transaction, which coincided with the expiration of Carsen's exclusive distribution agreements with Olympus on July 31, 2006, Carsen no longer has any remaining product lines or active business operations.
Cantel Medical Corp. is a leading provider of infection prevention and control products in the healthcare market. Our products include specialized medical device reprocessing systems for renal dialysis and endoscopy, dialysate concentrates and other dialysis supplies, disposable infection control products primarily for the dental industry, water purification equipment, sterilants, disinfectants and cleaners, hollow fiber membrane filtration and separation products for medical and non-medical applications, and specialty packaging for infectious and biological specimens. We also provide technical maintenance for our products and offer compliance training services for the transport of infectious and biological specimens.
This press release contains forward-looking statements. All forward-looking statements involve risks and uncertainties, including, without limitation, the risks detailed in the Company's filings and reports with the Securities and Exchange Commission. Such statements are only predictions, and actual events or results may differ materially from those projected.