Thursday October 9 8:40 AM EDT
Company Press Release
Prime Medical Services, Inc. Announces Vertical Integration
Investment
AUSTIN, Texas--(BW HealthWire)--Oct. 9, 1997--Prime Medical Services, Inc. (''Prime'')
(Nasdaq/NM:PMSI) announced today it has acquired a 75% equity interest in AK Associates, Inc.
(''AK'') which is headquartered in Mokena, Ill.
The company also stated the remaining 25% equity in AK will be held by AK's current owners
who will continue as management in the new entity. AK provides installation, upgrade,
manufacturing, refurbishment, and repair services for major medical equipment manufacturers and
mobile medical service providers. The purchase price paid for this interest was $4,200,000 with the
possibility of up to another $1,050,000 being payable based on certain performance criteria being
met by AK during 1998, plus an additional amount for work in progress through the effective date.
Joseph Jenkins, M.D., president, stated, ''This acquisition will provide Prime with a vertical
integration strategy in regards to the manufacture and refurbishment of the mobile trailers in our
existing fleet of 59 lithotripters and should provide us with enhanced capabilities as we continue
our growth in the mobile prostatherapy business. Currently we are in the development process of
10 mobile operations which will require specially designed and manufactured trailers from AK.
The acquisition of AK allows us to continue to broaden our business opportunities as a mobile
service provider.''
Ken Shifrin, chairman of the board, added, ''We have been extremely impressed with the quality of
products and services we have received from AK in the past and look forward to growing this new
segment of our business. Additionally, AK has an agreement with EDAP Technomed to
manufacture specialty prostatherapy trailers which fits nicely with our strategy to be the preferred
provider of such mobile services.''
Prime currently operates a fleet of 59 lithotripters in 34 states which perform over 36,000
procedures annually through contracts with over 400 hospitals and 225 managed care companies.
Lithotripsy is a cost effective, non-invasive method for treating kidney stones through the use of
extracorporeal shock waves which pulverize kidney stones and permit them to pass painlessly from
the body. In addition, Prime operates one mobile thermotherapy device and is currently developing
mobile routes to provide thermotherapy services to hospitals and surgery centers to treat benign
prostatic hyperplasia (BPH). Thermotherapy uses microwaves to apply heat to the prostate resulting
in relief of the symptoms of BPH without damaging surrounding tissues.
For more information, visit Prime's website at: www.primemedical.com . |
