Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, April 22, 1995 TAG: 9504240039
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
SOURCE: KIMBERLY D. DAVIS STAFF WRITER
DATELINE: LENGTH: Medium
Sterile Concepts, based in Richmond and formerly a unit of Carilion Health System of Roanoke, is the second-largest U.S. producer of custom, sterile procedure trays for hospitals and surgery centers. Terms of the purchase were not reported.
Associated Medical Products is a privately held firm based in Minnetonka, Minn., that makes custom, sterile procedure trays for hospitals and surgery centers mainly in the Midwest. It had sales of $15.8 million in 1994; Sterile Concepts had revenue of $132 million in its fiscal year ended Sept. 30.
"As part of our growth strategy, we are looking at other companies that do what we do," said Paul Woo, president of Sterile Concepts.
Associated Medical Products is "very similar" to Sterile Concepts, Woo said. "We hope to become a much stronger company in this market."
Purchasing Associated means Sterile Concepts will gain additional production capability, stronger and increased sales representation and a significant increase in its market share, Woo said.
The total market for sterile procedure trays in the United States is worth about $1 billion in sales, Woo said.
Baxter International, a major medical supply company, holds about 50 percent of the market, and Sterile Concepts expects to expand its market share from approximately 14 percent to 16 percent with this purchase.
"Acquisitions are a part of our growth strategy," he said. "We will continue to look at other [companies] that are favorable for our business."
"Ultimately it will allow us to provide a better product for our customer," Woo said.
by CNB