UTICA, N.Y., Dec. 18 /PRNewswire-FirstCall/ --
CONMED Corporation (Nasdaq: CNMD) announced today that it has acquired two
privately held companies, ValMed Corporation, and NorTrex Medical Ltd., that
provide products and services for operating rooms and critical care
departments. CONMED acquired the companies for a total of $6 million in a
combination of stock and cash.
The two companies will operate under the name "CONMED Integrated Systems"
and will offer fixtured equipment, room design, integration, installation and
software for operating room infrastructure and technology aimed at increasing
efficiency and cost savings to hospital and surgery center customers. Darko
Spoljaric, previously president of ValMed, has been named president of CONMED
Integrated Systems for the United States. Marc Caron, will remain president
of NorTrex, and will be responsible for design, manufacture and installation
of CONMED Integrated Systems equipment in Canada.
For 2003, the Company expects these acquisitions to generate an additional
$5 million to $8 million in sales with a break-even effect at the bottom line.
The Company expects the acquisitions to be accretive beginning in 2004.
Mr. Joseph J. Corasanti, President and COO of CONMED, stated, "I am very
excited about these new additions to CONMED. The added capabilities will
enhance the quality of service we provide to our customers through innovative
mechanics and technology aimed at increasing efficiency and productivity in
the operating room. Importantly, once integrated, we expect to realize
synergies between the new businesses and our current lines of surgical
products."
Based in Portland, Oregon, ValMed Corporation develops, sells and installs
state-of-the-art ceiling mounted service managers and lighting systems with
centralized control of the equipment in the operating room. Val Med's Nurse's
Assistant(R) provides touch screen technology control of operating room
equipment and lights. Since March 2001, CONMED has had a joint marketing
agreement with Val Med Corporation to assist in providing integrated operating
room solutions to joint customers.
Based in Quebec, Canada, NorTrex provides Canadian hospital customers with
ceiling mounted service managers for critical care areas, such as Intensive
Care Units. Nortrex is also a supplier to ValMed for components of the
operating room service managers.
Mr. Corasanti continued, "Our new business, CONMED Integrated Systems, is
uniquely positioned to provide hospital and surgery centers with an effective
turnkey solution for all of their integrated operating room needs. As
evidenced by the success of our marketing agreement with Val Med, this
combination is a compelling opportunity for CONMED."
Darko Spoljaric, President of CONMED Integrated Systems for United States
operations stated, "I am very pleased to be part of the CONMED organization.
The combination of our businesses will provide a one-stop shop for customers
who are building new operating rooms or renovating old operating rooms. We
can provide the customer with an integrated system of articulating ceiling arm
supports, service managers, lights and touch screen software control of
equipment in the operating room. In the same installation, CONMED can provide
the capital equipment that sits on our service arms such as electrosurgical
generators, video equipment, insufflators, power consoles, light sources and
fluid pumps."
Marc Caron, President of Nortrex Medical, said, "I am delighted to be part
of the CONMED organization and I look forward to continuing to supply the U.S.
manufacturing operations with component parts and to increase sales of ICU
units and integrated operating rooms in the Canadian market through CONMED's
extensive Canadian distribution system."
CONMED Corporation is a medical technology company specializing in
instruments, implants, and video equipment for arthroscopic sports medicine,
and powered surgical instruments, such as drills and saws, for orthopedic,
ENT, neuro-surgery, and other surgical specialties. The Company is also a
leading developer, manufacturer and supplier of RF electrosurgery systems used
routinely to cut and cauterize tissue in nearly all types of surgical
procedures worldwide, and endoscopy products such as trocars, clip appliers,
scissors, and surgical staplers. The Company also manufactures and sells a
full line of ECG electrodes for heart monitoring and other patient care
products. Headquartered in Utica, New York, the Company's 2,500 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, 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, 2001 and the
Prospectus dated May 22, 2002; (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, +1-315-624-3206; Investors - Lauren Levine or
Lanie Fladell, Media - Sean Leous, all of FD Morgen-Walke,
+1-212-850-5600, for CONMED Corporation
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