TOTOWA, N.J., April 3, 2007 (PRIME NEWSWIRE) -- Vital Signs, Inc. (Nasdaq:VITL) today announced acquisitions of two sleep diagnostic companies and their associated durable medical equipment supplier for approximately $11,500,000 plus a 10% earn out over the next 3 years.
Sleep Services of America, Inc. (SSA), a majority owned Vital Signs subsidiary, acquired the assets of Do You Snore, LLC, Southern Medical Equipment, Inc., and Advanced Sleep Technologies of Georgia, Inc. of Atlanta, Georgia. Do You Snore, LLC and Advanced Sleep Technologies of Georgia, Inc. primarily provide sleep diagnostic services in both free standing and hospital owned sleep laboratories, and Southern Medical Equipment is a provider of CPAP equipment to sleep apnea patients.
John Mathias, President of SSA, said, "These acquisitions allow SSA to expand geographically to the Southeastern U.S., as well as expanding its strategy of providing the patient with the complete range of sleep services. By guiding patients through the diagnostic procedure, through the set up and use of CPAP treatment devices and through follow-up services, SSA is uniquely positioned to address patient needs. Additionally, Do You Snore's history of performing 5,000 sleep studies per year in 19 Atlanta based laboratories allows SSA to broaden its geographic reach." Mr. Mathias continued, "We are excited that the former owners of the business who have shown great vision and insight into the world of sleep therapeutic and diagnostic services will be staying with us to help continue to drive SSA on to even greater success."
SSA has also entered into a new alliance with an established durable medical equipment provider in the Baltimore area. This contractual arrangement allows SSA to provide and bill third party payers such as insurance companies for CPAP therapy when patients are diagnosed with obstructive sleep apnea.
Vital Signs owns 70% of SSA, with the Johns Hopkins Health System Corporation owning 30%. Vital Signs, Inc. and its subsidiaries design, manufacture and market primarily single-use medical products for the anesthesia, respiratory/critical care, interventional cardiology/radiology and sleep/ventilation markets, achieving the number one market share position in five of its major product categories. Vital Signs is ISO 9001 certified and has CE Mark approval for its products. In 2006 Forbes Magazine named Vital Signs, Inc. as "one of the 200 Best Small Companies in America" based on financial criteria.
All statements in this press release (including statements regarding future success in the penetration of new markets) other than historical statements constitute Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from such statements as a result of a variety of factors, the ability to integrate new subsidiaries, the reaction of competitors and the risk factors referred to by Vital Signs in its Annual Report on Form 10-K for the year ended September 30th, 2006.
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