Thursday January 29, 2:33 pm Eastern Time
Company Press Release
National Healthcare Manufacturing: Regulatory Approval Received for Medi Guard Acquisition
WINNIPEG, MANITOBA--(BUSINESS WIRE)--Jan. 29, 1998-- National Manufacturi (VSE:NHM. - news; NASDAQ:NHMCF - news) National Healthcare Manufacturing Corp. (NHMC) is pleased to announce that further to its November 28, 1997 press release, it has received approval from the Vancouver Stock Exchange for the acquisition of Medi Guard Inc. of Oakville, Ontario.
Medi Guard Inc. is Canada's leading manufacturer of cellulose based disposable protective products for medical use. These products include examination gowns, drapes, table paper, bibs, towels, and aprons. The company also produces a line of single use products for airline in-flight services. In 1995 Medi Guard revenues were $770,000 and which increased to $2.8 million in 1996, with similar growth projected for 1997.
In consideration, the Company shall pay the greater of $400,000 or 3.5 times the annualized earnings of Medi-Guard (based on results of operations for the 11 months following the agreement). The consideration shall be paid in shares of the Company issued at the average closing price of the shares for the five trading days preceding November 24, 1998 and not to exceed 20 percent of the Company's shares outstanding. This is subject to Exchange acceptance at that time.
This acquisition of Medi Guard and the inclusion of their products in NHMC's custom procedure kits and trays enhances NHMC's vertical integration strategy. Also, NHMC's existing distribution channels in Canada, Europe & the United States will further assist in rapid growth of Medi Guard product sales.
National Healthcare is rapidly emerging as a market leader capable of providing the healthcare industry with a comprehensive array of products and services that incorporate custom packaging, sterile re-packing and laundry services, along with the state of the art supply management distribution technology. In the past two years NHMC has broadened its multi-faceted mandate to include:
1. Logistics and distribution centers (Hub & Spoke) where NHMC in partnership with hospitals and/or SYSCO Corp.(NYSE:SYY - news) designs and implements centralized logistic services for regional authorities. NHMC Hub & Spokes centers will also be enhanced by construction of facilities where reusable products such as Mertex and other protective wear will be packed, sterilized and delivered daily to hospitals.
2. Packaging services where NHMC (utilizing its state-of-the-art robotic technology) will provide procedure based disposable kits and trays to meet most procedural supply needs in hospitals.
By centralizing these services within the Hub & Spoke Centers, NHMC expects to deliver significant cost savings to healthcare systems while providing high levels of customer focused service. We will continue our pursuit for innovative products and services to further minimize healthcare costs to end users.
On Behalf of the Board,
Seyed M. Torabian, P.Eng., Executive Vice President
Neither NASDAQ nor the Vancouver Stock Exchange have reviewed or accept responsibility for the accuracy of this release.
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Contact:
National Healthcare Manufacturing Corporation
Alex P. Tsakumis, 604/689-8581
1-800-883-8841
Internet: nationalhealthcare.com
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