Span-America Acquires M.C. Healthcare Products; Expects Acquisition to be Accretive to Fiscal 2012 Earnings
Span-America Medical Systems, Inc. (NASDAQ: SPAN) announced today that it has acquired substantially all the assets of M.C. Healthcare Products Inc. MCHP, located in Beamsville, Ontario, Canada, is a privately-owned manufacturer and marketer of medical bed frames and related products for the long term care market.
“We are excited about combining M.C. Healthcare with Span-America to leverage our product solutions and marketing opportunities in the long term care market,” stated Jim Ferguson, president and chief executive officer of Span-America. Ferguson says the move will expand the company's market potential by bundling a robust line of medical bed frames with Span-America's broad line of branded therapeutic support surfaces. “M.C. Healthcare's product line fits very well with our current medical business,” he said. “We already sell to many of the same customers, attend the same trade shows and have similar sales and marketing efforts.” The company expects the acquisition to be accretive to its earnings in fiscal 2012.
MCHP reported sales of CDN $12.2 million and operating profit of CDN $170,000 which includes non-recurring and owner-related expenses of CDN $1.5 million and CDN $84,000 in depreciation and amortization for the fiscal year ended July 31, 2011.
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