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SPAN-AMERICA SIGNS LETTER OF INTENT TO ACQUIRE B.G.INDUSTRIES; ACQUISITION TO EXPAND PRODUCT LINE AND CUSTOMER BASE.

GREENVILLE, S.C.--(BUSINESS WIRE)--Feb. 10, 1995--Span-America Medical Systems, Inc. (Nasdaq/NM:SPAN) today announced that it has signed a letter of intent to acquire B.G. Industries, Inc., a privately held manufacturer of therapeutic replacement mattresses headquartered in Northridge, California.

B.G. Industries has annual sales of approximately $10 million. The purchase price was not disclosed.

"B.G. Industries is a leading supplier of therapeutic replacement mattresses for the U.S. health care market," stated Charles B. Mitchell, president and chief executive officer of Span- America Medical Systems. "The combination of B.G. Industries' MaxiFloat brand mattress and our proprietary PressureGuard mattress line will constitute a significant share of the therapeutic replacement mattress market in the U.S.

"B.G. Industries currently has supply contracts with major hospital and long-term care purchasing groups, and we expect that the proposed acquisition will increase our penetration of national accounts while strengthening our combined sales organizations. In addition, we believe the acquisition will expand our prospect base for sales of Span-America's other medical foam products in both the acute care and alternate site markets," concluded Mitchell.

The letter of intent between Span-America and B.G. Industries is subject to negotiation and execution of a definitive agreement containing warranties, covenants and other agreements; due diligence examinations; the approval of Span-America's Board of Directors and the shareholders of B.G. Industries; and certain other conditions.

Span-America Medical Systems, Inc. manufactures and markets products to the health care industry for the prevention and treatment of pressure ulcers. The Company also is a manufacturer and marketer of foam and contract packaging products for the consumer and industrial markets. Span-America's stock is traded on The Nasdaq Stock Market's National Market under the symbol SPAN.

CONTACT: Span-America Medical Systems, Greenville

Charles B. Mitchell, 803/288-8877
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Publication:Business Wire
Date:Feb 10, 1995
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