UTICA, N.Y., July 9 /PRNewswire/ -- CONMED Corporation (Nasdaq: CNMD)
stated today that it has completed the previously announced acquisition of the
remaining minimal access surgery ("MAS") product lines from Imagyn Medical
Technologies that it did not acquire in November 2000. Together with CONMED's
present lines of minimal access surgery products, the Company's MAS division
will be a significant supplier of instruments to hospitals and surgery centers
with revenues exceeding $30 million. The Company stated that it believes the
addition of the Imagyn product line will make CONMED the third largest U.S.
supplier of such MAS products to the healthcare industry.
The new products, with expected revenues of $18 to $20 million in the
first twelve months following closing, give CONMED a significant presence in
the fast-growing laparoscopic instrument market by more than doubling the
Company's existing line. The products acquired consist of various single-use
and "reposable" (devices integrating reusable and disposable, single-use
components) instruments such as trocars, handheld instruments and tissue
ligating devices enabling minimal access surgical techniques. Also acquired
was Imagyn's line of Reflex(R)(TM) skin staplers for wound closure.
As part of the transaction, the majority of Imagyn's domestic surgical
sales force have become CONMED employees. These sales professionals joined
the Company's current specialists in MAS products to form a new U.S. sales
force of approximately 25 employees specializing in minimal access surgical
products. Prior to the acquisition, the Company had sold its MAS products in
the U.S. through its electrosurgical sales force and three exclusive specialty
dealers whose 15 sales representatives have responsibility for specific
geographic locations. In addition to the newly created sales force, these
exclusive specialty dealers will continue to sell the Company's line of MAS
products in their territories. Outside the U.S., the Imagyn products have
revenues of approximately $5 million and are sold by an established and
effective dealer network. The Company will continue to distribute these
products through this same dealer network.
Manufacturing is continuing in Imagyn's Kalamazoo, Michigan plant during a
transition period expected to last from four to six months. Subsequently,
manufacturing will be transferred to CONMED's Utica, New York operations.
Under the terms of the agreement, CONMED has issued to Imagyn 1.3 million
shares of CNMD common stock, valuing the transaction at $33.9 million. The
issued stock is subject to a 90-day lock-up restriction and certain other
sales restrictions, and Imagyn has certain registration rights.
CONMED is a medical technology company specializing in instruments and
implants for arthroscopic sports medicine, and powered surgical instruments
for orthopedic, ENT, neuro-surgery, and other surgical specialties. The
Company is also a leading developer, manufacturer and supplier of advanced
medical devices, including RF electrosurgery systems used in all types of
surgery, ECG electrodes for heart monitoring and minimally invasive surgical
devices. Headquartered in Utica, New York, the Company's 2,400 employees
distribute its products worldwide from eight manufacturing locations.
This press release contains forward-looking statements based on certain
assumptions and contingencies that involve risks and uncertainties. The
forward-looking statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995 and relate to the
Company's performance on a going-forward basis. The forward-looking
statements in this press release involve risks and uncertainties which could
cause actual results, performance or trends, including the above mentioned
anticipated revenues and earnings, to differ materially from those expressed
in the forward-looking statements herein or in previous disclosures. The
Company believes that all forward-looking statements made by it have a
reasonable basis, but there can be no assurance that management's
expectations, beliefs or projections as expressed in the forward-looking
statements will actually occur or prove to be correct. In addition to general
industry and economic conditions, factors that could cause actual results to
differ materially from those discussed in the forward-looking statements in
this press release include, but are not limited to: (i) the failure of any one
or more of the assumptions stated above, including those relating to the
timing and costs of the transition, to prove to be correct; (ii) the risks
relating to forward-looking statements discussed in the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2000; (iii)
cyclical purchasing patterns from customers, end-users and dealers; (iv)
timely release of new products, and acceptance of such new products by the
market; (v) the introduction of new products by competitors and other
competitive responses; (vi) the possibility that any new acquisition or other
transaction may require the Company to reconsider its financial assumptions
and goals/targets; and/or (vii) the Company's ability to devise and execute
strategies to respond to market conditions.
SOURCE CONMED Corporation
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Related links:
http://www.conmed.com
Company News On-Call:
http://www.prnewswire.com/comp/201850.html
CONTACT:
Robert Shallish, Chief Financial Officer of
CONMED Corporation, 315-797-8375, ext. 2219; Investors - Theresa
Vogt or Sarah Torres, or Media - Dan Budwick, all of Morgen-Walke
Associates, 212-850-5600, for CONMED Corporation
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