- Significantly increases product line and U.S. customer base -
TORONTO, Dec. 10, 2012 /CNW/ - Prism Medical Ltd., ("Prism Medical" or
"the Company") (TSXV: PM), a leading provider of durable medical
equipment and related services to the mobility challenged, today
announced that it has acquired the manufacturing assets of Medcare
Products Inc. (MedCare). As part of the transaction, Prism has entered
into a 10-year agreement to exclusively supply all products Medcare
sells in the moving and handling industry. All amounts are in U.S.
Medcare is a manufacturer and supplier of floor lifts, ceiling lifts,
car extractors, slings and transfer aids for the U.S. market. Medcare's
operations are based out of Burnsville, Minnesota, U.S., outside of
Minneapolis-St. Paul. Medcare sells these products to the long-term
care industry throughout the United States and to a growing list of
acute care facilities in the U.S.
"This is an important transaction for us as it meets a number of key
strategic objectives and builds shareholder value," said Stuart
Meldrum, CEO of Prism Medical. "Prism's product offering will expand
with the acquisition of the Medcare product ranges, which we hope to
market in other world geographies. In addition, we will be able to
leverage Medcare's strong base of dealer business in the long-term care
sector and continue to build our hospital group customer base in new
geographies with the inclusion of several world-renowned hospital
The manufacturing assets, which are composed of tools, dies, patents,
trademarks, production processes, designs, approximately $2 million of
inventory and the supply contract were purchased for $10 million in
cash, with a holdback of $1.25 million pending Medcare meeting
specified conditions related to the acquired inventory and other
Prism has also invested $450,000 to acquire 49% of Medcare which remains
a sales and service company focused on expanding its customer base in
the U.S. long term and acute care markets.
About MedCare Products Inc.
Medcare Products Inc. provides 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.
Medcare designs and manufactures all of its products in the U.S.,
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.
SOURCE: Prism Medical Ltd.
For further information:
Chief Financial Officer
416-260-2145 ext. 229
416-815-0700 ext. 264