Source: www.cantelmedical.com
Cantel Medical Corp. (CMD) is a high growth story in the infection prevention industry. Cantel’s main growth driver has been its roll-up strategy, having completed 37 acquisitions since 2000.
This roll-up strategy has paid good dividends to the company and investors. There is evidence that such acquisitions have created shareholder value by achieving returns higher than their cost of capital. As a result, the market has rewarded the company with higher share prices.
There are high expectations about the ability of the company to keep growing by such actions. However, I