Prism Medical Ltd. (“Prism”) today announced that it has completed the acquisition of an English distributor of moving and handling products for the mobility impaired effective May 5 2009. The acquisition cost was $1.5m which was satisfied by a cash payment of $0.75m and deferred payments in the amount $0.75m. The deferred payments are repayable over 3 years together with interest at 7% over a term of 3 years.
The distributor has been in operation for 17 years. It supplies, installs and services a variety of equipment including ceiling lifts, stair lifts and through the floor lifts. Products are sold for use in homecare and institutions.
The former owners and key management of the distributor have entered into employment contracts and will continue to be responsible for the day to day operations.
Andrew A. McIntyre, Chairman and CEO of Prism stated, “This acquisition continues the geographic expansion of our client base. The acquisition is expected to be accretive to earnings in the current fiscal year and will strengthen Prism’s ability to execute its strategic plans.”
Prism Medical Ltd. (prismmedicalltd.com) is a provider of durable medical equipment and related services to the mobility disadvantaged in Canada, the U.S.A. and the United Kingdom. While Prism's history dates back to 1996, Prism's subsidiaries and divisions have been servicing the mobility disadvantaged since the mid 1980s in their homes, long-term care facilities and acute care facilities. Prism includes Waverley Glen and ErgoSafe Products, North America's premier lifting & handling equipment and repositioning aid manufacturer with distribution across Canada and the U.S., Westholme and Care Free Lifting & Handling, leading distributors of moving and handling products in the UK, and Freeway Health Care, a UK-based manufacturer of ceiling hoists and shower chairs.
Certain statements in this release may constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.