NORTH ANDOVER, Mass., April 4 /PRNewswire-FirstCall/ -- Andover Medical, Inc. (OTC Bulletin Board: ADOV.OB - News), a single source provider of orthopedic, podiatric and urological durable medical equipment (“DME”) and incontinence treatment solutions, announced today that it has entered into a definitive merger agreement to acquire Ortho-Medical Products, Inc. (“OMI”). The transaction marks Andover’s first acquisition as a public company, as it intends to establish a nationwide network to assist practitioners in providing quality care and services to their patients.
OMI is a full-service provider of procedure specific, orthopedic durable- medical equipment (“DME”), respiratory equipment, orthotic equipment, and prosthetic devices. The Company serves greater New York City; New York’s Nassau, Suffolk, and Westchester Counties; Northern New Jersey; Upper New York State; and Connecticut. OMI contracts with 50 established insurance companies, including Aetna, Oxford, and United Health Care.
Marc Waldman, a principal of OMI and its Executive Vice President of Business Development, stated “With the backing of Andover Medical, Inc. our clients will benefit from a broader range of products and services while still receiving the highest level of customer service on which they have come to depend. I expect the benefits of this acquisition to be readily apparent and anticipate a seamless transition.”
Edwin Reilly, Chief Executive Officer of Andover Medical, Inc. said, “This merger is an important step in realizing our goal of consolidating a portion of this highly fragmented industry as we execute our ongoing plan to grow our business. This transaction will improve Andover Medical’s brand awareness, and solidify our distribution and re-selling network.”
Reilly continued, “We have letters of intent to acquire two additional DME companies, and we will now focus on consummating those deals. These anticipated acquisitions are aligned with the enterprise wide objective of creating new efficiencies, facilitated by better future billing and collections systems, and improvements in our purchasing power through economies of scale. I believe these anticipated improvements in operating performance will greatly enhance long term shareholder value.”
Under the terms of the agreement, Andover Medical will acquire all of the outstanding equity of Ortho-Medical Products, Inc., in exchange for $500,000 in cash and $2,000,000 in restricted shares of Andover common stock. The final closing -- expected in early April -- will occur upon independent auditors completing an audit of OMI’s 2005 and 2006 financial statements.
About Andover Medical, Inc.
Andover Medical, Inc. (AMI) is building a single source provider of orthopedic, podiatric and urological durable medical equipment (“DME”) and incontinence treatment solutions. The Company intends to establish a nationwide subsidiary network and plans to offer practitioners the largest selection of competitively priced brand-name durable medical equipment, and urodynamic diagnostic and treatment products. For more information, please call (978) 557-1001 or visit http://www.andovermedical.com.
About Ortho-Medical Products, Inc.
OMI is a full-service provider of procedure specific orthopedic durable medical equipment (“DME”), respiratory equipment, orthotic equipment, and prosthetic devices. OMI serves greater New York City; New York’s Nassau, Suffolk, and Westchester Counties; Northern New Jersey; Upper New York State; and Connecticut. OMI’s network is available to case managers, preferred provider organizations, and health maintenance organizations. The company strives to assist practitioners in providing quality care and services. OMI contracts with 50 established insurance companies, including Aetna, Cigna, Oxford, and United Health Care.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These forward looking statements include Andover’s intent to establish a nationwide network, OMI’s clients benefiting from a broader range of products and services, the benefits of the acquisition to be readily apparent, the transaction improving Andover’s brand awareness and solidifying its distribution and re-selling network, acquisitions creating new efficiencies, improvements in operating performance, greatly enhancing long- term shareholder value and plans to offer physicians the largest selection of competitively priced brand-name durable medical equipment, and urodynamic diagnostic and treatment products. All forward-looking statements speak only as of the date of this press release. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of AMI and its affiliates to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors which, could impact the Company and the forward-looking statements contained herein are included in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Source: Andover Medical, Inc.
