Microtek Medical Holdings, Inc. Announces Samco Acquisition
March 21 2006 - 11:40AM
PR Newswire (US)
Acquisition expected to be accretive to earnings in 2006
ALPHARETTA, Ga., March 21 /PRNewswire-FirstCall/ -- Microtek
Medical Holdings, Inc. (NASDAQ:MTMD), a leading manufacturer and
marketer of infection control products, fluid control products and
safety products to healthcare professionals, announced today that
it has acquired KMMS Holdings, Ltd. and its European manufacturing
and distribution operations (collectively, Samco). Headquartered in
Malta and with distribution capabilities in Munich, Germany, Samco
manufactures and sells a variety of disposable surgical products
which complement Microtek's existing product offerings. The
financial terms related to the acquisition were not disclosed. Dan
R. Lee, Microtek's President and CEO stated, "With its product
lines, low cost manufacturing and direct German distribution
capabilities, the Samco acquisition represents a key facet of our
international expansion strategies. In financial terms, we expect
Samco to add approximately $3.3 million in annualized revenues at
margins consistent with those we enjoy from our U.S. branded
business. We expect the Samco acquisition to be accretive to our
earnings in 2006." Mr. Lee continued, "Samco's distribution
capabilities immediately strengthen our competitive position with
high margin proprietary products and expand our OEM presence in
Germany. Samco also offers a number of strategic advantages which
will benefit our sales force throughout Europe. Several members of
Samco's former management and sales team will also join Microtek,
further enhancing our international management team." "Over the
years, we have worked very hard to build Samco into an excellent
provider of proprietary branded products in Europe. Combining
Microtek's outstanding portfolio of infection control products with
Samco's products will improve our distribution capabilities,"
stated Klaus Taubenthaler, Samco's former director and newly
appointed German Business Manager for Microtek. "I am looking
forward to working with Microtek as we expand our collective
distribution efforts." Mr. Lee concluded, "We are excited about the
prospects that the Samco transaction holds for Microtek and its
shareholders. As we work to integrate Samco into Microtek, we will
continue to look for other strategic acquisitions which expand our
market presence and implement our growth strategies." About
Microtek Medical Holdings, Inc.: Microtek Medical is a leading
manufacturer and supplier of innovative product solutions for
patient care, occupational safety and management of infectious and
hazardous waste for the healthcare industry. Headquartered near
Atlanta, Georgia, the Company offers an extensive line of infection
control, fluid control and safety products, such as disposable
equipment and patient drapes, which are marketed to healthcare
professionals through multiple channels, including direct sales,
original equipment manufacturers ("OEM's") and private label
arrangements. Microtek Medical's goal is to provide healthcare
professionals with innovative product solutions that encompass a
high-level of patient care and prevention of cross infection in
operating rooms and ambulatory surgical centers worldwide. For
further information, visit http://www.microtekmed.com/. Actual
Results Could Differ From Forward-Looking Statements: This Press
Release contains forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Such statements include, but are not limited to, the
Company's expectations that the Samco acquisition will add
approximately $3.3 million in annualized revenues at margins
consistent with the Company's U.S. branded business margins, the
Company's expectation that the Samco acquisition will be accretive
to its earnings in 2006, the Company's belief that Samco's
distribution capabilities immediately strengthen the Company's
competitive position with high margin proprietary products and
expand its OEM presence in Germany, the Company's belief that the
strategic advantages of the Samco acquisition will benefit its
sales force throughout Europe, and the Company's ability to
identify and consummate other strategic acquisitions which expand
its market presence and implement its growth strategies. Such
statements are subject to certain factors, risks and uncertainties
that may cause actual results, events and performance to differ
from those referred to in such statements. These risks include,
without limitation, the following: low barriers to entry for
competitive products could cause the Company to reduce the prices
for its products or lose customers; large purchasers of the
Company's products regularly negotiate for reductions in prices for
the Company's products, which may reduce the Company's profits;
because a few distributors control much of the delivery of hospital
supplies to hospitals, the Company relies significantly on these
distributors in connection with the sale of the Company's branded
products; the Company's relatively small sales and marketing force
may place the Company at a competitive disadvantage to its
competition; the Company's contract manufacturing division relies
upon a small number of customers, the loss of any of which could
have a material adverse impact on the Company; the inability of the
Company to complete acquisitions of businesses at an attractive
cost could adversely affect the Company's growth; if the Company is
successful in acquiring businesses, the failure to successfully
integrate those businesses could adversely affect the Company; the
Company's growing international operations subject the Company's
operating results to numerous additional risks; markets in which
the Company competes are highly competitive, which may adversely
affect the Company's growth and operating results; the Company's
products are subject to extensive governmental regulations,
compliance or non-compliance with which could adversely affect the
Company; the Company's strategies to protect its proprietary assets
may be ineffective, allowing increased competition with the
Company; fluctuations in the value of the dollar against foreign
currencies have in the past and may in the future adversely affect
the Company's operating results; and the Company's expenses for raw
materials and product distribution are adversely affected by
increases in the price for petroleum. The foregoing risks are
intended to identify some of the principal factors that could cause
actual results to differ materially from those described in the
forward-looking statements included herein. These factors should be
read in conjunction with the more detailed risk factors included in
the Company's Annual Report on Form 10-K for the year ended
December 31, 2005 filed with the Securities and Exchange
Commission. The Company does not undertake to update its
forward-looking statements to reflect future events or
circumstances. DATASOURCE: Microtek Medical Holdings, Inc. CONTACT:
Dan R. Lee, President & CEO, or Jerry Wilson, CFO, or John
Mills, Investor Relations, , all of Microtek Medical Holdings,
Inc., +1-800-476-5973 Web site: http://www.microtekmed.com/
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