AORTECH SELLS ASSETS OF A-1 ENGINEERING DIVISION
AORTECH SELLS ASSETS OF A-1 ENGINEERING DIVISION ST. PAUL, Minn., Jan. 31 /PRNewswire/ -- AorTech, Inc.
(NASDAQ: AORT) today announced that it has entered into a purchase agreement to sell certain assets of its A-1 Engineering Division to an entity controlled by the former principals of A-1 Engineering, Inc. The asset purchase agreement excludes all heart valve manufacturing related assets which are being retained by AorTech.
In a January 1991 merger, AorTech acquired the operating assets and the business of A-1 Engineering, Inc. The transaction was intended not only to acquire a profitable business, but, through vertical integration, to gain control of the precision machining function which A-1 was performing on the titanium orifice used in the company's Ultracor heart valve. The technology and equipment utilized in heart valve manufacturing has already been transferred to AorTech's St. Paul headquarters facility. Greg Ruehle, president of AorTech, stated, "With the exception of heart valve manufacturing activities, AorTech and A-1 Engineering have proven to be very dissimilar businesses. We have faced significant challenges in integrating the two organizations." Ruehle added, "We believe this transaction will benefit AorTech by enhancing working capital and earnings, which in turn can be allocated to further diversify our medical products line. That is where our resources and attention need to remain focused." AorTech, Inc., based in St. Paul, Minnesota, manufactures and distributes the Ultracor Prosthetic heart valve and the Arcas/AorTech Annuloplasty Prosthetic Ring. AorTech also distributes cardiovascular electrophysiology monitoring equipment. -0- 01/31/92 /CONTACT: Gregory J. Ruehle, president and CEO, AorTech, 612-481-1208; or Tom de Petra of de Petra & Associates, 612-338-7630, for AorTech/ (AORT) CO: AorTech, Inc. ST: Minnesota IN: MTC SU:
KH -- MN009 -- 5762 01/31/92 16:18 EST
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|Date:||Jan 31, 1992|
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