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CABOT MEDICAL ANNOUNCES THE ACQUISITION OF BRISTOL-MYERS SQUIBB SUBSIDIARY

 CABOT MEDICAL ANNOUNCES THE ACQUISITION OF
 BRISTOL-MYERS SQUIBB SUBSIDIARY
 LANGHORNE, Pa., March 13 /PRNewswire/ -- Cabot Medical Corporation (NASDAQ-NMS: CBOT) has announced the signing of a definitive agreement in which Cabot Medical Corporation will acquire certain assets and liabilities relating to the urological business of the Surgitek subsidiary of Bristol-Myers Squibb Company (NYSE: BMY).
 The terms of the agreement call for a cash payment of $57 million and 225,000 warrants to purchase Cabot Medical stock at a price of $16. The companies said they anticipate that the acquisition will be completed before Dec. 31, 1992.
 Surgitek, based in Racine, Wis., is a leading producer of urological disposables and other devices used in minimally invasive diagnostic and surgical urological procedures. Cabot Medical produces a range of medical devices used for minimally invasive surgical diagnostic procedures in gynecology, general surgery and family practice.
 Commenting on the acquisition, Warren Wood, chairman and chief executive officer of Cabot Medical, stated: "This acquisition is one more step in our long-range plan to position Cabot Medical as one of the leading companies in the medical device business. It furthers our goal of broadening our base in the market for devices for minimally invasive surgical procedures, a market which is expected to grow to in excess of $1 billion within the next three years.
 "Surgitek's product lines and sales force serving the urological specialty complement Cabot's offerings directed to the gynecologist and general surgeon. We believe that the combined organization will be the largest, most experienced, specialized sales force of its type in the United States. In addition, each organization has a well-balanced development and manufacturing capability which will enable the company to accelerate the introduction of advanced new products for the minimally invasive surgery market."
 Financing for the acquisition has been provided by the sale of approximately $67 million of 7.5 percent convertible subordinated debentures to institutional holders. The debentures mature in seven years and are subordinated to Cabot's funded indebtedness and are convertible into shares of Cabot's common stock at a conversion price of $16 per share. The debentures provide that Cabot must redeem them at par plus accrued interest in the event that Cabot's stockholders do not approve this financing vehicle or the acquisition does not close by Dec. 31, 1992.
 The acquisition is subject to the fulfillment of certain terms and conditions including necessary regulatory approvals and approval by the stockholders of Cabot of the financing. In conjunction with the shareholders' meeting, certain officers and directors of Cabot who own of record approximately 26 percent of Cabot's outstanding common stock have agreed to vote their shares in favor of the financing.
 /delval/
 -0- 3/13/92
 /CONTACT: Marvin Sharfstein of Cabot Medical, 215-752-8300/
 (CBOT BMY) CO: Cabot Medical Corporation; Surgitek; Bristol-Myers Squibb Company ST: Pennsylvania, Wisconsin IN: MTC SU: TNM


MP-DM -- PH003 -- 7658 03/13/92 08:10 EST
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Publication:PR Newswire
Date:Mar 13, 1992
Words:477
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