UTICA, N.Y., Nov. 20 /PRNewswire/ -- CONMED Corporation today announced
that it has acquired certain assets of the disposable minimal access surgical
business of Imagyn Medical Technologies, Inc. The product line consists of
certain disposable surgical instruments including trocars, clip appliers and
scissors. These instruments are used by laparoscopic surgeons in a variety of
abdominal surgeries. In the last twelve months, the acquired products
generated sales of approximately $6,500,000. The transaction is consistent
with the Company's strategy to strengthen its position in the minimal access
surgery market.
Under the terms of the agreement, CONMED acquired the products for
$6,000,000 plus up to $2,000,000 contingent consideration dependent upon
product sales within the first twelve months following the closing date.
Financing will be provided through borrowings under the Company's existing
bank revolving credit agreement. CONMED will distribute the products through
the Company's existing Minimal Access Surgery marketing group and the existing
Surgical Systems sales force. The Company's Utica, New York operations group
will assume manufacture of the products.
Mr. Joseph J. Corasanti, President and Chief Operating Officer of CONMED
said, "Our minimal access surgery group, while the smallest of our units, has
experienced sales growth in excess of 20% over the last twelve months with an
innovative line of products. The acquisition of the Imagyn line will double
our business in this market. More importantly, the new products add depth to
our offerings by adding a disposable clip applier to our product portfolio,
allowing us to be more competitive in those situations where hospitals prefer
a package solution to their minimal access surgery needs. We expect that the
acquisition will be break-even in the fourth quarter of 2000 and modestly
accretive to overall earnings in 2001."
CONMED is a medical technology company specializing in instruments and
implants for arthroscopic sports medicine and powered surgical instruments,
such as drills and saws, for orthopedic, ENT and neuro-surgery. 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. 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 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, 1999; (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 and/or (v) the Company's ability to devise and execute strategies to
respond to market conditions.
SOURCE CONMED Corporation
 back to top
Company News On-Call:
http://www.prnewswire.com/comp/201850.html or fax,
800-758-5804, ext. 201850
CONTACT:
Robert D. Shallish, Jr., CFO - Vice
President, Finance, of CONMED Corporation, 315-797-8375, ext.
2219; or Investors - Theresa Vogt or Sarah Torres, or Media -
Stacey Nield or Dan Budwick, all of Morgen-Walke Associates,
212-850-5600, for CONMED Corporation
|
