Microtek Medical Holdings Acquires International Medical Products B.V.
June 02 2004 - 9:30AM
PR Newswire (US)
Microtek Medical Holdings Acquires International Medical Products
B.V. Acquisition expands Microtek's European operations and
broadens reach into several procedural-based specialties. COLUMBUS,
Miss., June 2 /PRNewswire-FirstCall/ -- Microtek Medical Holdings,
Inc. (NASDAQ:MTMD) announced today that its newly formed
Netherlands-based subsidiary, Microtek Medical B.V. ("Microtek")
has acquired certain businesses of International Medical Products
B.V. and affiliates ("IMP") from Cardinal Health. The acquired
businesses include the development, manufacture, marketing and
distribution of high quality dip- molded medical devices (primarily
ultrasound probe covers), other equipment covers, cardiac thoracic
drain systems, gynecological devices and wound care products. This
acquisition, completed on May 28, 2004, is the most recent in a
series of strategic acquisitions undertaken by the Company over the
past three years and significantly expands Microtek's European
operations. The Company estimates this transaction will add
revenues of approximately $12 million annually and expects that the
acquired businesses will be accretive to earnings beginning in
2005. While the Company indicated that it has not yet completed its
revised financial forecast for 2004, the Company believes this
transaction will be slightly dilutive to earnings in 2004 and has
tentatively revised its forecast for full year 2004 earnings to a
range of $0.18 to $0.21 per diluted share. Financial terms of the
agreement were not disclosed. Dan R. Lee, the Company's President
and CEO, stated, "I am very pleased to announce the completion of
the IMP acquisition. Strategic acquisitions such as IMP are a
significant component of our current business plan and our long-
term growth initiatives. The IMP acquisition strengthens Microtek's
infection control product offerings to the healthcare industry.
Tactically speaking, the IMP acquisition leverages on our marketing
strategy of expanding our product lines and distribution channel
capabilities into procedural-based specialties and brings a number
of exciting opportunities to our Company. Most importantly, the IMP
acquisition expands Microtek's platform of product offerings within
mainland Europe. The acquisition also adds IMP's Ultracover(R) line
of latex and latex-free dipped probe covers to Microtek's existing
product portfolio, thereby providing us with attractive marketing
opportunities. These products will significantly enhance our own
product offerings within the ultrasound specialty, both in Europe
and in the U.S. Additionally, the other acquired products are
complementary to our equipment and patient draping products, which
specifically addresses our goal of having more products for
bundling and sale to our customers. This acquisition will enhance
our offerings into multiple specialties, including cardiology,
gynecology, urology, radiology, gastroenterology and other
intra-operating uses." Mr. Lee continued, "Under the proven
expertise of the Company's management team, we strongly believe
that the IMP acquisition will provide enhanced revenue contribution
as well as improved earnings and increased value for our
shareholders over the long term. Additionally, by expanding our
European presence, the IMP acquisition offers a great deal of
flexibility and operating leverage to enable future expansion of
our international businesses." Mr. Lee remarked, "We, along with
Cardinal Health, are fully committed to making the transition of
the IMP businesses to Microtek as smooth as possible for our
customers, and our respective customer service departments are
working together to ensure the highest levels of support." 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
estimated annual revenue contribution from this transaction, the
Company's belief that the acquired businesses will be accretive to
earnings beginning in 2005, the Company's belief that the
transaction will be slightly dilutive to earnings in 2004, the
Company's revised forecast for full year 2004 earnings per diluted
share, the Company's belief that the IMP acquisition will provide
enhanced revenue contribution as well as improved earnings and
increased shareholder value over the long term, and the Company's
belief that the IMP acquisition will provide flexibility and
operating leverage to enable future expansion of the Company's
international businesses. 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, those
identified in Risk Factors in the Company's Annual Report on Form
10-K for the year ended December 31, 2003, including, without
limitation, the risks described in Risk Factors under the captions
"-Reliance upon Microtek," "-History of Net Losses,"
"-Competition," "-Product Liability," "-Stock Price Volatility,"
"-Dependence on Key Personnel," "-Anti- takeover Provisions," "-Low
Barriers to Entry for Competitive Products," "-Potential Erosion of
Profit Margins," "-Risks of Completing Acquisitions," "-Risks of
Successfully Integrating Acquisitions," "-Small Sales and Marketing
Force," "-Reliance upon Distributors," "-Reliance Upon Large
Customers," "-Microtek Regulatory Risks," "-Risks of Obsolescence,"
"-Reduced OREX Market Potential," "OREX Commercialization Risks,"
"-OREX Manufacturing and Supply Risks," "-Risks Affecting
Protection of Technology," "-Risks of Technological Obsolescence"
and "-OTI Regulatory Risks." We do not undertake to update our
forward-looking statements to reflect future events or
circumstances. About Microtek: The Company, a market leader in the
healthcare industry, develops, manufactures and sells infection
control products, fluid control products and safety products to
healthcare professionals for use in environments such as operating
rooms and outpatient surgical centers. 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, or
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