Medex signs binding letter of intent to acquire Creative Rehab Technology Services

Medex, Inc. (MDXX:PK), today announced the signing of a binding letter of intent to acquire privately held Creative Rehab Technology Services, Inc. Founded in 1997 and headquartered in Chula Vista, California, Creative Rehab produces specialty high-end rehabilitation chairs in the durable medical equipment industry.

“We welcome Creative Rehab Technology Services to the Medex portfolio of companies.”

Terms of the transaction were not disclosed but will consist of a combination of cash and Medex, Inc. restricted shares. (There will be no dilution to the existing shareholders.) Closing of the transaction is expected within two weeks.

“Consistent with our previously outlined acquisition strategy, the Creative Rehab transaction is expected to produce annual revenue of $1.2 million and net earnings of approximately $365,000. Of greater significance, the Company’s existing service relationships with Medicare and Medi-Cal offers important channels for new sales of other product lines as well as ready justification for additional related acquisitions throughout the U.S.”, said Mr. Marco Montenegro, Chairman and CEO of Medex, Inc. “We welcome Creative Rehab Technology Services to the Medex portfolio of companies.”