|By Marketwired .||
|February 10, 2014 09:03 AM EST|
TORONTO, ONTARIO -- (Marketwired) -- 02/10/14 -- Prism Medical Ltd., ("Prism Medical" or "the Company") (TSX VENTURE: PM), a leading provider of durable medical equipment and related services to the mobility challenged, today announced that it has acquired an additional 51% ownership interest in MedCare Products Inc. (MedCare), resulting in MedCare becoming a 100% owned subsidiary.
MedCare is a sales and service organization based out of Burnsville, Minnesota, just outside of Minneapolis PMnr 2014 02 10 - Acquires 100%St. Paul. MedCare, operating predominately in the Mid-West, supplies a wide range of products and services including ceiling lifts, floor lifts, slings and transfer aids to the U.S. Long Term Care and Acute Care markets.
In December of 2012, Prism Medical acquired a 49% ownership interest in MedCare for $450,000. At the same time, Prism Medical also acquired MedCare's manufacturing assets and inventory and an exclusive supply contract for a combined cost of $10 million with a holdback of $1.25 million related to the acquired inventory and other matters.
The remaining 51% of MedCare was purchased for $268,000 and the remaining holdbacks from the December 2012 transaction were settled for a payment of $532,000. While Prism will continue to exclusively supply all the products MedCare sells in the moving and handling industry, the supply contract was terminated at closing upon MedCare becoming a 100% owned subsidiary.
"The acquisition of 100% of MedCare is an important transaction for us as it meets a number of key strategic objectives and builds shareholder value." said Andrew McIntyre, Chairman of Prism Medical. "MedCare will continue to operate as before from its base in Burnsville, Minnesota, relying on the strength of its local personnel, reputation for service, enhanced product offering and its strong customer base, which includes several world-renowned hospital groups, in order to further expand the business."
"Prism has been a key partner for MedCare in enhancing our ability to grow." said Jennifer Smith, former CEO of MedCare. "We are very pleased that they are committed to maintaining an entrepreneurial focus and building upon the strengths of our local presence, experienced and dedicated personnel and commitment to our customers."
About MedCare Products Inc.
MedCare Products Inc. is a distributer and marketer of patient lift equipment made to prevent caregivers and patients from sustaining injuries during the process of moving and transferring. The Company has a complete product offering of floor lifts, ceiling lifts, car extractors, slings and transfer aids giving the Company the advantage of being able to offer 24-hour parts response as well as localized service, support and training to its customer base. In 2011, MedCare Products was named to the Fastest 50 List as the 10th fastest growing company in Minnesota by the Minneapolis-St. Paul Business Journal.
About Prism Medical Ltd.
Prism Medical Ltd. is one of the largest providers and manufacturers of durable medical equipment and related services to the mobility challenged in Canada, the US and the UK, with more than 100,000 installations and 200,000 product solutions sold. The Prism Medical brands include Waverley Glen and ErgoSafe, North America's leading supplier of lifting, handling and repositioning aid products and services across Canada and the US. Freeway and Prism Service & Repair are leading suppliers of moving and handling products and services in the UK. For further information visit Prism Medical's website at www.prismmedicalltd.com or www.sedar.com.
This document contains forward-looking statements relating to our operations and to the environment in which we operate and our strategy, action plans and investments, which may involve estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond our control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in this report and our other public filings. Consequently, readers should not place any undue reliance on such forward-looking statements. These forward-looking statements are made as of the date of this report. Prism Medical is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors. All forward-looking statements attributable to Prism Medical are expressly qualified by these cautionary statements.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.