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Prism Medical Announces Acquisition of Movement 2 Ltd.

^{Published on 2011-04-18 04:10:19 - Market Wire}
 

TORONTO, April 18 /CNW/ - Prism Medical Ltd. ("Prism Medical" or "the Company") (TSXV: PM), a leading provider of durable medical equipment and related services to the mobility disadvantaged, today announced the acquisition of Movement 2 Ltd. ("Movement 2"), a provider of home care patient moving and handling equipment, servicing and repair in the East Midlands region of the UK.

The total consideration paid for the acquisition was £0.8 million (approximately $1.3 million). Under the terms of the agreement, Prism Medical has paid £0.4 million (approximately $0.64 million) in cash and issued £0.4 million (approximately $0.64 million) of 7% notes, repayable over 3 years. The transaction is expected to be accretive in the first year of ownership.

Movement 2 supplies a wide range of products including ceiling track hoists, floor hoists, shower chairs, and slings.  Following the completion of the acquisition, Movement 2 will become the Midlands service centre for Prism Medical. 

"By combining the Movement 2 service engineering teams with our existing teams, we will have more than 80 highly skilled service and installation engineers throughout the UK," said Andrew A. McIntyre, Chairman and Chief Executive Officer of Prism Medical Ltd.  "Patients and caregivers will benefit from both the resources of a large national company, along with local and personalized service."

About Prism Medical Ltd.
Prism Medical Ltd. is one of the largest providers and manufacturers of durable medical equipment and related services to the mobility challenged in Canada, the US and the UK, with more than 200,000 installations. The Prism Medical brands include Waverley Glen and ErgoSafe, North America's leading supplier of lifting, handling and repositioning aid products and services across Canada and the US. Freeway and Prism Service & Repair are leading suppliers of moving and handling products and services in the UK.

Forward-Looking Statements
This document contains forward-looking statements relating to our operations and to the environment in which we operate and our strategy, action plans and investments, which may involve estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond our control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in this report and our other public filings. Consequently, readers should not place any undue reliance on such forward-looking statements. These forward-looking statements are made as of the date of this report. Prism Medical is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors. All forward-looking statements attributable to Prism Medical are expressly qualified by these cautionary statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.