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Atrion Corporation
1426 Curt Francis Road
P. O. Box 587
Arab, Alabama 35016
NEWS RELEASE
FOR IMMEDIATE RELEASE
Contact:
Jeffery Strickland
Vice President & Chief Financial Officer
(205) 586-1580
ATRION COMPLETES SALE OF
NATURAL GAS PIPELINE AND MARKETING SUBSIDIARIES
ARAB, Alabama (May 30, 1997) Atrion Corporation (Nasdaq/NM - ATRI) announced today that it has completed the sale of its natural gas pipeline and marketing subsidiaries to Midcoast Energy Resources, Inc. (AMEX:MRS) for approximately $39.4 million in cash. The sale, which was approved by Atrion's stockholders at the Company's annual meeting held yesterday, is part of Atrion's efforts to redeploy its assets in higher growth areas like the medical products industry.
Jerry A. Howard, Chairman, President and Chief Executive Officer, said, "We believe the proceeds from the sale of our natural gas businesses will provide a strong foundation from which to launch our plans to acquire other companies involved in the medical products industry. Our intent is to focus on operations that offer significant synergies with our existing medical-products operations." Howard noted that the Company will record a gain of about $17 million in the second quarter of 1997 from the sale of its natural gas pipeline and marketing subsidiaries. As a result of this gain, Atrion estimates that its book value per share has increased to approximately $16 per share from the first quarter 1997 level of about $11 per share.
In other actions at Atrion's annual meeting held yesterday, stockholders elected three directors to serve three-year terms ending with the annual meeting in the year 2000. Elected were: Richard O. Jacobson, President and Chief Executive Officer of Jacobson Warehouse Company, Inc.; Jerome J. McGrath, with the law firm of Gallagher, Boland, Meiberger & Brosnan; and Hugh J. Morgan, Jr., Chairman of the Board of National Bank of Commerce of Birmingham. Stockholders also approved the Company's 1997 Stock Incentive Plan and ratified the appointment of Arthur Andersen LLP as independent accountants for the year ending December 31, 1997.
Atrion Corporation designs, develops, manufactures, sells, and distributes medical products and components for a worldwide health care market.