Another acquisition by NHM
F.Plante
From: cthompson@cdn-news.com
Date: Wed, 15 Apr 1998 19:02:11 -0400
Subject: Hot Off The Wire: NATIONAL HEALTHCARE MANUFACTURING CORPORATION
To: cthompson@cdn-news.com
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Canadian Corporate News --- Hot Off The Wire
News Release for NATIONAL HEALTHCARE MANUFACTURING CORPORATION
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: NATIONAL HEALTHCARE MANUFACTURING CORPORATION
VSE SYMBOL: NHM
NASDAQ SYMBOL: NHMCF
APRIL 15, 1998
National Healthcare Manufacturing Acquires Budva
International L.L.C.
VANCOUVER, BRITISH COLUMBIA--National Healthcare Manufacturing
Corporation (NHMC) is pleased to announce that it has acquired 100
percent of privately held Budva International L.L.C. (Budva) of
Lenexa, Kansas. The Company has paid US$1.085 million by the
assumption of bank debt and outstanding loans, plus three times
the net annualized earnings which are to be paid in NHMC's Class A
common shares issued at the average closing price for the five
trading days preceding the 12 months from the closing date.
Completion of this acquisition is subject to regulatory approvals.
For the past six years Budva has been a leading manufacturer and
provider of disposable plastic products to the healthcare
industry. Along with the existing product offering of specimen
collection containers, medicine and denture cups and specialty
products including sterile OR specimen collections and sterile
mid-stream collection kits, NHMC will expand the existing 26
product lines to offer other plastic products for all three major
areas of healthcare. The Company intends to move all 13 injection
molding presses of this operation to its Antioch facility, located
outside of Chicago, to complement its existing plastic fusion
molding operations.
Mac Shahsavar, President & CEO stated, "This vertical acquisition
enables NHMC to fully manufacture the majority of the products it
uses within its primary business of kits & trays manufacturing.
The addition of the plastic manufacturing combined with our
existing capabilities to manufacture solution and cellulose based
paper products places NHMC in a very unique position to control
its overall costs and profitability." In addition, "Budva's
existing sales and marketing network within the acute care,
physician offices and alternate healthcare including home
healthcare and nursing homes will create an opportunity for
exposure of NHMC's entire product line."
NHMC owns and operates the worlds first and only automated robotic
production facility capable of assembling and packaging various
kits and trays for medical and surgical procedures. Use of this
proprietary technology enables NHMC to produce these medical
devices efficiently, cost effectively, quickly and accurately thus
providing an edge over its competition who currently use manual
labour. Through its wholly owned subsidiaries, NHMC manufactures
and distributes personal care and anti-microbial products to
health care and home care institutions. NHMC also through its
United States subsidiary, National Healthcare Logistics, provides
state of the art supply chain management to integrated hospital
systems.
On Behalf of the Board,
M. Seyed Torabian, P.Eng., Executive Vice President
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FOR FURTHER INFORMATION PLEASE CONTACT:
National Healthcare Manufacturing Corporation
Alex P. Tsakumis
(604) 689-8581
1-800-883-8841
nationalhealthcare.com
Neither NASDAQ nor the VSE have reviewed or accept responsibility
for the accuracy of this release.
INDUSTRY: MDS
SUBJECT: TMN
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