HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Medical Action Industries Inc. (NASDAQ/MDCI), a leading supplier of medical and surgical disposable products, today announced that it has completed its previously announced acquisition of Medegen Medical Products, LLC (“Medegen Medical Products”). Medegen Medical Products is the market leader in the manufacture of patient utensil products. It develops, manufactures and markets products focusing on patient care and laboratory areas. The acquisition, Medical Action’s tenth and most significant, will be accretive to earnings immediately.
Medegen Medical Products has annual revenues of approximately $100,000,000. The purchase price of $80,000,000 was paid in cash, funded from cash on hand, together with borrowings from lending institutions.
Paul D. Meringolo, Chief Executive Officer and President of Medical Action, commented, “This acquisition further diversifies and complements our breadth of product offering to our existing customers, as well as adding new customers outside of our current channels of distribution. The combination of expanded contracts, increased volumes and strategic product line extensions will all lead to increased synergies for Medical Action and our customers.”
“Medical Action’s management team has been working on integrating and positioning the organization for continued growth. We are excited about the enhanced portfolio of clinical and hospital product offerings,” noted Manuel B. Losada, Medical Action’s Vice President of Sales & Marketing. “The combined organization will now ‘focus’ on expanding our market position within operating room supplies, minor procedure kits and trays, containment for medical waste and plastic patient utensil product categories.”
Mr. Meringolo further advised that our results of operations for the quarter ended September 30, 2006 are scheduled to be released on Wednesday, November 1, 2006 before the market opens. A conference call will be conducted by Mr. Meringolo and Richard G. Satin, Vice President of Operations and General Counsel, to discuss Medical Action’s financial results at 10:00 a.m. (ET) on November 1, 2006.
The conference call will be simultaneously webcast on our website: www.medical-action.com. The dial-in number for the conference call is 1-888-200-8867. The complete call and discussion will be available for replay on our website beginning at 2:00 p.m. (ET) on November 1, 2006.
“We will continue to build a diversified global medical products company by increasing our market penetration through development or acquisition of new or complimentary product lines, and by entering new markets with our existing products through our strong distribution network,” Mr. Meringolo concluded.
This news release contains forward-looking statements that involve risks and uncertainties regarding Medical Action’s operations and future results. Please see the Company’s filings with the Securities and Exchange Commission, including, without limitation, the Company’s Form 10-K and Form 10-Qs, which identify specific factors that would cause actual results or events to differ materially from those described in the forward-looking statements.
Contact: Medical Action Industries Inc. Richard G. Satin, Vice President Operations and General Counsel, 631-231-4600
Source: Medical Action Industries Inc.
