biz.yahoo.com
Tuesday January 18, 8:15 am Eastern Time
Company Press Release
I-Flow Corporation Acquires Spinal Specialties Inc.
LAKE FOREST, Calif.--(BUSINESS WIRE)--Jan. 18, 2000--I-Flow Corp. (Nasdaq:IFLO -
news) today announced that it has acquired privately held Spinal Specialties Inc., a designer
and manufacturer of custom spinal, epidural and nerve block infusion kits, based in San Antonio, Texas, for $1.5 million.
The purchase price consisted of $750,000 in cash and 200,000 shares of I-Flow common stock. Chairman, President and Chief
Executive Officer Donald M. Earhart said that the acquisition is expected to be accretive to earnings in 2000.
Noting that Spinal Specialties had revenues of $1.7 million in 1999, Earhart said: ''Since commencing operations in 1992, Spinal
Specialties has developed an impressive line of custom, disposable products for chronic pain management, which are tailored to the
specific needs of the hospital, anesthesiologist and pain clinic. The company also has established an equally impressive customer
base.
''This acquisition provides I-Flow with a turnkey opportunity to enter another important therapeutic segment of the total pain
management market.'' He explained that the acquisition is part of I-Flow's strategy to enter new markets where the opportunity
for growth is believed to be substantial.
''The recent success of our disposable PainBuster(TM) and ON-Q(TM) pain management systems has enabled I-Flow to build a
strong presence in the acute pain management market. With the addition of Spinal Specialties we now have an opportunity to
duplicate these accomplishments in the chronic pain arena,'' he said.
Earhart added, ''The acquisition provides I-Flow with an established product line, which can be combined with I-Flow's infusion
systems in an effort to create new, high-margin products, and provides I-Flow immediate access to specialized direct sales
expertise and marketing experience.
''By adding I-Flow's Nerve block and other infusion devices to Spinal Specialties' custom spinal trays, we will be able to create
new products for managing acute and chronic pain. The framework is now in place for I-Flow to build a presence in the chronic
pain management market.''
About I-Flow
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