TEMCO NATIONAL CORPORATION TO FORM IMPORTANT EUROPEAN JOINT
VENTURE TO DEVELOP MEDICAL DIAGNOSTIC CENTERS IN ITALY
COLUMBUS, Ohio, Feb. 18 /PRNewswire/ -- TEMCO National Corporation (AMEX: TEM), a Columbus, Ohio, based healthcare company, today announced that it has reached an agreement in principal with Gruppo Hesperia of Modena, Italy, to form a joint venture in Italy. The new company, Bristol International AG of Switzerland, will be a start-up operation that will initially develop diagnostic centers in Italy as the planned first step of an aggressive strategy to eventually expand and to enlarge its operation in other West European countries.
Marvin Kantor, chairman of TEMCO, stated "We are delighted at the prospect of a working alliance with Gruppo Hesperia, which we know to be a large, established and reputable privately-owned industrial group with interests in the Italian healthcare industry." Gruppo Hesperia operates two private hospitals in Italy (Bergammo and Modena), and a diagnostic center and analytical laboratory in Modena. It is a well established hospital and healthcare company that is one of the largest private hospital groups in Northern Italy dedicated to cardiology.
Under the terms of the proposed arrangement Gruppo Hesperia will purchase up to 500,000 shares of TEMCO common stock from the treasury at approximately market price and will have the right to appoint one director to TEMCO's board. In return, TEMCO will have the opportunity to invest in the Italian hospital chain. The transaction is subject to the approval of TEMCO's board, and is scheduled to be closed sometime in March.
Kantor commented that, "This is a milestone event for TEMCO. It constitutes another building block in TEMCO's strategic plan to position itself advantageously in growth-oriented healthcare services in both the US and Europe." In October, 1991, TEMCO sold its Passaic, N.J., manufacturing division in order to concentrate its resources on the delivery of high-quality healthcare services and the operation of high- technology diagnostic centers. The company currently owns and operates nursing homes, a home health care agency, several pharmacies, and an ultra-modern diagnostic center. The latter specializes in state-of-the- art diagnostic imaging techniques, including magnetic resonance imaging (MRI), CT scans, ultrasound, mammography and 3-D imaging. Additionally, the company intends to construct and to operate a 75-bed nursing facility and clinic specializing in Alzheimer patients, for which it has been granted a permit from the state of Ohio, and to operate a cardiac- oriented MRI unit in Ohio. It is contemplated that Gruppo Hesperia will participate with TEMCO in the development of the Columbus, Ohio Alzheimer center.
"Furthermore," Kantor stated, "in the over-all context we expect to achieve two major objectives. First, we shall be in the mainstream of a profitable sector of the growing US medical market. Second, we are positioning ourselves to participate in the latent but rapidly expanding market for our type of medical technology in Europe. By wedding TEMCO's technological expertise to the existing foundation in the European market where our Italian partner is already a major player, it should be a very attractive vehicle for our future growth."
This international alliance is projected to generate annualized revenues of $10-15 million within two years of inception. "In generating additional revenues for TEMCO," Kantor added, "it should help to strengthen our earnings stream over the intermediate and longer term."
/CONTACT: Marvin D. Kantor, chairman, 614-221-6000, Sheldon A. Gold, executive vice president, 614-221-6000, both of TEMCO; or John Simmons, 212-949-7640, of Arkin Associates for TEMCO/
(TEM) CO: TEMCO National Corporation; Gruppo Hesperia ST: Ohio IN: HEA SU: JVN SM -- NY061 -- 9930 02/18/92 12:13 EST