Medical Action Industries has completed the acquisition of Avid Medical, a provider of custom procedure trays serving the healthcare industry.
Medical Action has paid $62.5m in cash for Avid, and expects the transaction to be accretive to earnings during the fiscal year ending March 31, 2011, excluding the impact of non-recurring acquisition related and integration costs.
Medical Action also expects to achieve cost savings and efficiencies driven by the combination of the two companies’ national sales forces which will create broader sales channels, increased service coverage, and dedicated focus to clinical and patient care products.
The acquisition will increase Medical Action’s ability to serve healthcare providers in acute care facilities and surgery centers.
The combined competencies, clinical expertise and extensive healthcare industry knowledge of both organizations should enhance the Medical Action’s ability to provide comprehensive and innovative solutions that enable healthcare providers to improve patient care while optimising clinical and economic outcomes.
Medical Action Industries CEO and board chairman Paul Meringolo said that this strategic acquisition strengthens Medical Action’s core capabilities in developing, manufacturing and delivering quality medical products to hospitals and healthcare institutions.
“The addition of custom procedure trays increases the breadth and depth of our product offerings and progresses us toward our initial goal of attaining $500m in revenues,” Meringolo said.