Healthcare Industry News: durable medical equipment
News Release - October 12, 2006
Andover Medical, Inc. signs Letter of Intent to Acquire Ortho-Medical Products, Inc.NORTH ANDOVER, Mass.--(HSMN NewsFeed)--Andover Medical, Inc. (AMI) (OTCBB:ADOV.OB ) today, announced that it has entered into a letter of intent with New York based Ortho-Medical, Inc. to acquire all of its outstanding stock.
The acquisition will represent the first consolidation for AMI in the orthopedic durable medical goods space and furthers the Company's objective of rolling up smaller businesses to gain efficiencies and increase profit margins. AMI said the deal will add important product lines and new distribution channels. It is intended to serve as the springboard for further growth in the orthopedic medical area. AMI's intention is to consolidate ordering, inventory and reimbursement billing, and expects to extract inefficiencies out of the consolidation.
Ortho-Medical Products, Inc. is a full-service company specializing in procedure specific orthopedic durable medical equipment, respiratory equipment, and orthotics and prosthetics. It services the five boroughs of New York City, Nassau, Suffolk and Westchester Counties, Northern New Jersey, Upper New York State and the State of Connecticut. Ortho-Medical, Inc.'s objective is to make this network available to Case Managers, Preferred Provider Organizations and Health Maintenance Organizations. The company strives to provide quality care and services.
"This acquisition is expected to position Ortho-Medical Products for continued strong growth and enable it to be part of this needed industry consolidation which will result in better customer service and higher operating margins," says Marc Waldman, Exec VP Business Development for Ortho-Medical. "Once this deal closes, I plan on intensifying my efforts to find other strategic acquisitions for AMI," continued Marc Waldman.
About Andover Medical, Inc.
Andover Medical, Inc. (AMI) is building a single source provider of orthopedic, podiatric and urological durable medical equipment and incontinence treatment solutions. The Company intends to establish a nationwide subsidiary network and plans to offer physicians the largest selection of competitively priced brand-name durable medical equipment, and urodynamic diagnostic and treatment products. For more information, please call (978) 557-1001 or visit www.andovermedical.com.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These forward looking statements include the acquisition serving as the springboard for future growth; AMI expecting to extract inefficiencies out of the consolidation, and plans to offer physicians the largest selection of competitively priced brand-name durable medical equipment, and urodynamic diagnostic and treatment products. All forward-looking statements speak only as of the date of this press release. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of AMI and its affiliates to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors which, could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Source: Andover Medical
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