Executive Summary

Executive Summary

 

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Avcor Healthcare Products makes devices that improve patient outcomes, reduce pain and are easy-to-use for the healthcare staff. They accomplish this goal by face-to-face sales, marketing and research contact with clinicians who use their products. These experts are the front-line primary care-givers that serve the most vulnerable patients in our healthcare system. Avcor’s products make their job easier and bring relief to the patients to whom they serve.

Fred Trainor and Marshall Walker founded Avcor in 1984 to provide high-quality, innovative medical products to the medical marketplace. Both have since retired from the company. The Company has offices in Grand Prairie, Texas and has over 25 sales, administrative, distribution and manufacturing staff.

With the endorsement and encouragement of a majority of the Company’s stockholders and bankers, Richard Manley and Bruce Cheatham acquired controlling interest in the company in January 2012. Prior to their participation in Avcor, Cheatham and Manley collaborated at CVC, Inc. (a medical distributor based in Arlington, Texas) for ten years prior to its sale to Sarnova (Water Street Healthcare Partners, Chicago) in December 2009. Immediately after they took active control of the Company, they did a top-to-bottom revitalization of the Company’s activities. Reversing several years of declining sales and negative profitability, recent years have yielded sales growth in excess of 10% and positive net profit in 2013. Manley and Cheatham have had a history of turning around companies before coming to Avcor. After stints at American Hospital Supply and Ballard Medical Products, Manley acquired CVC in 1993. At that time, it was a two-state company with $10m in sales and an exclusive focus in open-heart surgery. After divesting the cardiovascular business to Medtronic in 1999, Cheatham and Manley re-tooled the company into a purveyor of leading-edge products. That endeavor led them into neonatal medicine, emergency medicine and pre-hospital trauma products. The company was shipping over $35m per year at the time of the sale to Sarnova. Cheatham, a CPA, grew the company operationally into a logistics powerhouse, eventually providing customer service, logistics and accounting roles to several of the start-up companies that CVC represented. The company’s VP of Manufacturing and Global Sourcing, Scott Walker, has been with the company since its founding. Walker oversees a Texas-based manufacturing, research and developmental facility with 15 employees, several overseas OEM manufacturing facilities and travels the world in search of ways to reduce costs and improve production methods for Avcor, its business partners and customers. CFO Kara Walker is a CPA and has been with the company 14 years. She oversees the administration, financial systems and banking relationships of Avcor. The company recently transitioned from an independent representative marketing channel to a direct sales force. The Southwest Area VP of Sales, Chris Hiltpold, worked with Manley and Cheatham for five years at CVC. After three years at Sarnova, Hiltpold joined the company in August 2012. The West Area VP of Sales, Tom Harden, is a former USMC Corpsman and Operating Room nurse. Based in Denver, he joined Avcor in 2013. Independent reps and a regional specialty distributor with 14 reps service the northeast and southeast territories, respectively. The Company is currently recruiting to fill the Midwest territory, which is based in Chicago and is in negotiations with two additional specialty medical distributors for additional coverage..

Avcor Healthcare Products is a 30 year-old company with industry-standard products and innovative new technologies. Founded in 1984 as an OEM supplier to American Hospital Supply, Avcor has evolved into a manufacturer and distributor of products for Lab, NICU, Surgery, Orthopedics, Plastic Surgery and General Hospital. Since the invention of the first Velcro™-closure elastic bandage, Avcor has developed new and innovative designs in latex-free tourniquets, IV armboard stabilization, thermal compression therapy and post-operative oral and maxillofacial surgery. In addition, the company has products in development to address the rapidly- growing plastic surgery and aesthetics markets. The company partners with large US distributors such as Owens & Minor, Cardinal Health, McKesson and Medline to market its products. Additionally, Avcor currently or has at some point in the past manufactured some of their private label branded products. Avcor also distributes through local, regional, diversity and specialty dealers such as Buffalo Hospital Supply, Mercury Medical, PHS and others to meet the needs of its customers.

Manley and Cheatham acquired their interest in Avcor with the intent to transform it into an international provider of both standard of care and innovative products. Since acquiring the company, they have instilled a culture of forward-focused action and teamwork. As leaders, they promote communication and self-directed initiative supported by a communicated corporate vision. This gives every member of the team decision-making ability and keeps the team lean and aggressive. In addition, the company instituted an incentive stock option program in 2012. Every member of the Avcor team is now a shareholder. The ownership believes in shared reward as well as shared responsibility. Values and virtue are critical to the leadership’s decision-making. The company prefers to hire based upon character and provide the training needed to be successful in a role. It is a practice that served them well at CVC and they intend to instill the same sense of pride and commitment to service at Avcor. Sales projections indicate continued growth. New products and sharper growth with recently introduced products are the catalyst for these expectations.

Bruce N, Cheatham, Jr. currently hold the position of President / Chief Operating Officer at Avcor while Richard Manley holds the position of Chairman of the Board.

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