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COLUMBUS, Miss. -- Microtek Medical Holdings, Inc. announces that its wholly-owned subsidiary Microtek Medical, Inc. has signed a definitive agreement to acquire the drape product line of Gyrus ENT, LLC. The acquisition will strengthen Microtek's market position in the disposable drape market and was completed on November 29, 2002. The Company estimates this transaction will add revenues of approximately $3 million annually and expects the transaction to be accretive to earnings.
For Gyrus ENT, LLC, the sale of its drape product line is part of its strategy of divesting selected non-core businesses in order to focus on its global ENT opportunities.
Financial terms of the agreement were not disclosed.
Dan R. Lee, Microtek's president and CEO stated, "I am very pleased to announce Microtek's acquisition of this drape product line. This transaction is a result of our ongoing growth initiatives, which include in part strategic and accretive acquisitions. We strongly believe that this product line acquisition is a unique and natural fit within our Company and one that will provide top-line revenue contribution as well as significant bottom-line potential. We believe that we can integrate this product line into our operations without incurring any significant fixed manufacturing or fixed operating expense which should result in an attractive operating margin on this incremental business. We are also confident that the transition of this product line to Microtek will be of great benefit to the Gyrus customers. All of this translates to enhanced revenue growth, improved profitability and increased value for our shareholders."