Vaughan, Canada (PressExposure) April 21, 2009 -- PRISM MEDICAL LTD. (TSX-V: PM) ("Prism") today announced that it has completed the acquisition of a distributor of moving and handling products for the mobility impaired effective April 17, 2009. The acquisition cost was approximately $1.936 million which was satisfied by a cash payment of $1.086 million and a vendor take-back promissory note in the amount of $0.85 million. The note is payable in three equal annual installments together with interest at 8% over a term of three years. In addition to the purchase price, the vendors are entitled to an earn-out amount based on the performance of the acquired business over the next 5 years.
The distributor has been in operation for 12 years. It distributes a variety of non-mechanical safe patient handling and movement products. The products include ceiling lifts, floor lifts, tubs, beds and repositioning aids. Products are sold for use in institutions and homecare.
The acquisition is an arm's length transaction. The former shareholders of the distributor have entered into employment contracts and will continue to be responsible for day-to-day operations.
Andrew A. Mclntyre, Chairman and CEO of Prism stated, "The acquisition marks another step in the strategic expansion of our geographic and institutional client base. In addition it will strengthen our management and sales team and is anticipated to be accretive to earnings in the current fiscal year."
Certain statements in this release may constitute forward-looking statements. Such forwardlooking 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.