A IMS partner and subsidiary of STERIS Corp.

Corporate News

STERIS Acquires Two Companies to Expand its Instrument Care Service Business
October 16, 2012 – STERIS Corporation announces the purchase of two privately owned businesses: IMS and Total Repair Express, leading providers of surgical instrument repair services and instrument care products to hospitals and surgery centers in the United States. These two businesses will be integrated into STERIS's Healthcare segment as part of the company's specialty services business, which provides a variety of niche services to customers, including space decontamination solutions, chamber cleanings and instrument repairs.

"As we continue to expand our customer solutions, entering the surgical instrument repair business through these acquisitions will enhance our existing presence in hospital sterile processing and surgical departments," says Walt Rosebrough, president and CEO of STERIS Corporation. "These bolt-on acquisitions will give STERIS one of the largest surgical instrument repair businesses in the United States, and we are excited about the opportunity to leverage our existing customer relationships to grow these businesses throughout the country."

As hospitals face increasing pressure to reduce costs and increase procedure productivity, they are seeking solutions that will not only deliver tangible cost savings but will also allow them to focus their internal resources on patient care. As a result, the market for outsourced surgical instrument repair has emerged as an opportunity for healthcare facilities to more efficiently manage their operating costs. The surgical instrument repair industry is fragmented with many local and regional competitors as well as that done by hospitals themselves. The amount of business outsourced today is estimated to be over $500 million in the U.S., growing in the mid- to high-single digits.

IMS is headquartered in Ohio, and TRE is headquartered in New Jersey. Their core business is the repair of a wide variety of surgical instruments and other hospital equipment both on-site at hospital premises and at central repair facilities. The primary services offered include inspection, cleaning, lubrication and repair of reusable surgical instruments such as forceps, retractors and scissors. Typical contracts involve regular servicing of instruments in the surgical suite of hospitals, and may involve daily or weekly interaction with hospital sterile processing center personnel at client facilities. By contrast, STERIS's current service business is primarily focused on the installation, maintenance and repair of the company's capital equipment in healthcare facilities.

STERIS acquired IMS and TRE for approximately $110 million, including contingent consideration. In calendar 2012, the combined businesses are anticipated to generate revenue of approximately $72 million and operating income of approximately $7 million. After adjusting for depreciation and amortization, shareholder expenses and other non-recurring items, adjusted operating income for the combined businesses is anticipated to be approximately $11 million for the same period. STERIS anticipates that one of the acquisitions will qualify for a joint election tax benefit under Section 338(h)(10) of the Internal Revenue Code, and the other acquisition is structured as an asset purchase, both of which allow goodwill and intangibles to be fully deductible for tax purposes. Adjusting for the present value of the anticipated tax benefits, the purchase price is effectively reduced to approximately $93 million. After consideration of this benefit, the price equates to roughly one times revenue and approximately eight times adjusted operating income for calendar 2012.

On both a U.S. GAAP and adjusted basis, the acquisitions are anticipated to be approximately neutral to diluted earnings per share in fiscal 2013 and accretive in fiscal 2014 and beyond. The transactions closed on Oct. 16, 2012 and were financed through borrowings under STERIS's credit facility.

IMS Appoints Vice President of Endoscopy
Stow, OH— IMS is pleased to announce the appointment of Jim Hoffman to Vice President of Endoscopy and Field Operations. Mr. Hoffman’s long history of 20 years in the industry started with the implementation of on-location surgical instrument repair services. Jim managed sales efforts throughout the Western United States and was directly responsible for repair service quality standards. Jim’s experience with group purchasing organizations (GPO’s), educational programs, and direct sales was instrumental in growing the business to a national level. For more information, please contact a IMS Customer Care Representative at (800)783-9251.

On October 16th, 2012, IMS was acquired by Steris Corporation. IMS will function as a stand-alone subsidiary for STERIS’ entry into the instrument restoration and repair business. Together, we are committed to providing the same world class customer service to which you have become accustomed.

IMS Announces Merger
We are proud to announce the merger of surgical instruments with Arrow Medical Supply, headquartered in Libertyville, IL, effective June 6, 2011. We believe the combination of our companies will allow us to expand market coverage in Illinois, Wisconsin, Michigan, and Indiana while delivering World Class Customer Service. We will be maintaining 100% of Arrow’s work force and hiring additional teammates for the local market. This exciting development will also give our existing customers access to a local repair facility for faster turn-around times.

We appreciate your business! It is because of your confidence in us that we are able to make these kinds of investments. We are excited by the opportunities ahead of us and look forward to delivering more World Class Customer Service that you expect from us.

IMS Announces Appointments
Stow, OH- Michelle Ready, Co-Chief Executive Officer of IMS, is pleased to announce the following appointments:

Jim Mauro – Vice President of Business Development
Matt Rudolph – Vice President of Operations & Chief Customer Advocate
Ben Ruhlin – Regional Sales Manager
Daniel DeShane – Regional Sales Manager
Scott Swartz – Regional Sales Manager
Mike Lagasse – Regional Sales Manager

Featured Articles on IMS
Check out the article in AkronLife.com about Spectrum's growth and success over the years.
Download the pdf to read the full article.

IMS receives Growth Award
Stow, OH-Rick Schultz, Co-Chief Executive Officer of IMS, is pleased to announce that IMS was recently awarded a 2007 Business Growth Award by the Cascade Capital Corporation.

CEO Selected as One of 30 Most Influential Leaders in Healthcare Sterile Processing
Stow, OH-IMS is pleased to announce the selection of CEO, Rick Schultz, as one of 30 Most Influential Leaders in Healthcare Sterile Processing, as chosen by Healthcare Purchasing News.

IMS receives Chamber of Commerce Award
Stow, OH-IMS has received the Improved Service Business Award, presented by the Stow-Munroe Falls Chamber of Commerce.

Customer-Service-Awards-09surgical instruments Receives 2009 World Class Customer Service Award

Stow, OH—IMS is pleased to announce that on June 17,2009, for the 2nd consecutive year, the company was recipient of a Smart Business 2009 World Class Customer Service Award. The awards were presented to companies that set the standard for great customer service. Of 100 companies selected as finalists, IMS was one of just 11 that received this distinguished recognition.
What continues to set IMS apart is the company’s attention to detail. At Spectrum, all calls are answered by a live representative and as a quality control measure all calls are monitored, reviewed, and scored in search of perfection. The company monitors customer feedback with every order and also provides a live “chat” feature on Spectrum’s newly designed website which allows customers to ask questions and provide feedback in real time. For more information, please contact a customer care representative at (800)783-9251 or visit the company’s website at www.spectrumsurgical.com.

IMS Announces:
Quality Management Certification

Stow, OH — surgical instruments is pleased to announce the achievement of ISO 9001:2000 certification and ISO 13485:2003 certification (medical devices). As IMS is committed to establishing and maintaining the highest levels of quality in its distribution of products and conduct of repair services, the registration process involved an extensive audit of the company’s Quality Management System and verified that the management system conforms to the requirements specified in the ISO standards. Departmental supervisors, managed the certification process. To further exceed the quality requirements of its customers, IMS recently became a member of ASQ, the American Society for Quality and has implemented CQI (Certified Quality Inspector) certification for its Clinical Instrument Repair Consultants. Headquartered in Stow, Ohio, IMS is a nationally recognized company providing surgical instruments, surgical instrument repair, sharpening and restoration, and instrument accessories. For more information, please contact a IMS Customer Care Representative at (800)783-9251.

Clinical Instrument Repair Consultants Receive ASQ-Certified Quality Inspector

Milwaukee, WI, March 13, 2009 — The Certification Board of the American Society for Quality is pleased to announce that several IMS Clinical Instrument Repair Consultants have completed the requirements to be named an ASQ-Certified Quality Inspector (ASQ CQI). As such, the recipients have reached a significant level of professional recognition, indicating a proficiency in and a comprehension of quality inspection tools and techniques.

The American Society for Quality has been the world’s leading authority on quality for more than 60 years. With more than 90,000 individual an organizational members, the professional association advances learning, quality improvement and knowledge exchange to improve business results, and to create better workplaces and communities worldwide.

"ASQ provides certification as a way to provide formal recognition to professionals who have demonstrated an understanding of, and a commitment to, quality techniques and practices in their job and career", explains Roberto Saco, President, American Society for Quality.

The certification of IMS Clinical Instrument Repair Consultants, is yet another example of Spectrum’s commitment to quality, and dedication to employee training and education.

IMS receives Chamber of Commerce Award

Stow, OH—IMS has received the Improved Service Business Award, presented by the Stow-Munroe Falls Chamber of Commerce.  The award was presented at the Chamber’s annual Community Business Awards luncheon held at the Acker-Moore VFW post on January 15, 2008.  IMS received the award because of their recent building expansion project.  In 2007, IMS nearly doubled their space, which will allow them to grow for the years to come.  Since moving to Stow in 1998, Spectrum’s employee total has grown by more than 500%.  The City of Stow’s planning director, Mr. Ken Trenner, presented the award.

CEO Selected as One of 30 Most Influential Leaders in Healthcare Sterile Processing

Stow— IMS is pleased to announce the selection of Co-Chief Executive Officer, Rick Schultz, as one of 30 Most Influential Leaders in Healthcare Sterile Processing, as chosen by Healthcare Purchasing News in August, 2007. Mr. Schultz has authored many articles designed to educate clinical and processing personnel about the care and handling of surgical instruments and authored the textbook, Inspecting Surgical Instruments; An Illustrated Guide which has been developed into a national certification program. Mr. Schultz lectures around the world to healthcare professionals.



For more surgical instrument information, please call a customer care representative at (800)783-9251 or contact us via email.