UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 15, 2012
MEDICAL ACTION INDUSTRIES INC.
(Exact name of registrant as specified in its charter)
Delaware | 0-13251 | 11-2421849 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification Number) | ||
500 Expressway Drive South, Brentwood, New York |
11717 | |||
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number including area code (631) 231-4600
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers
(c) Appointment of Chief Financial Officer
On March 15, 2012, Medical Action Industries Inc. (the Company) issued a press release announcing that Mr. John Sheffield was appointed Chief Financial Officer and Corporate Secretary of the Company, effective as of March 19, 2012.
Mr. John Sheffield, age 42, brings 20 years of financial, accounting and strategic transaction experience to the Company. From July 2010 to March 2012, Mr. Sheffield worked for Bank of America Merrill Lynch where he was a senior investment banker providing strategic and financial advice primarily to middle market companies. Prior to that time Mr. Sheffield worked with other investment banks providing advice on mergers and acquisitions as well as debt and equity financings; including the Bank Street Group LLC from May 2008 to July 2010. He has represented companies across several industries, with a particular focus on healthcare. From March 2007 to March 2008, Mr. Sheffield was Vice President of Corporate Development for ReAble Therapeutics until its merger with DJO Inc., a portfolio company of The Blackstone Group and global manufacturer of orthopedic medical devices and services. He began his career as a Certified Public Accountant with a predecessor of PricewaterhouseCoopers.
Mr. Sheffield will be paid an annual base salary of $275,000 and was awarded stock option grants covering 30,000 shares of common stock of the Company under the Companys 1994 Stock Incentive Plan, as amended. As a named executive officer of the Company, Mr. Sheffield will be eligible to participate in the executive compensation programs provided generally to the executive officers of the Company, as more fully described under Executive Compensation in the Companys Proxy Statement filed with the Securities and Exchange Commission on June 16, 2011 pursuant to Section 14(a) of the Securities Exchange Act of 1934, which description is incorporated in this Item 5.02 by reference. The Company expects to enter into a change in control agreement with Mr. Sheffield.
There is no arrangement or understanding between Mr. Sheffield and any other persons pursuant to which he was selected to be an officer of the Company. Mr. Sheffield has no family relationships with any director or executive officer of the Company or any person nominated or chosen to become a director or executive officer of the Company.
(c) Appointment of Certain Officers
On April 19, 2012, the Company issued a press release announcing the establishment of three new strategic business units and the appointments of Mr. Richard Setian, Ms. Cynthia E. Bell and Mr. Charles L. Kelly to the newly created positions of President and General Manager of each of the three business units. The Company expects these appointments will be effective on or about July 1, 2012.
Mr. Richard Setian, age 52, has been named President and General Manager of Custom Procedure Trays and Operating Room Products. Since the acquisition of AVID Medical by the Company in August 2010 (the Acquisition), Mr. Setian has served as the Companys Vice President of Sales and Marketing. Prior to the Acquisition, Mr. Setian was AVIDs President and Chief Operating Officer for over ten years. Additional information about Mr. Setians business experience is included under the heading Information About Our Executive Officers in the Companys Proxy Statement filed with the Securities and Exchange Commission on June 16, 2011 pursuant to Section 14(a) of the Securities Exchange Act of 1934, which description is incorporated in this Item 5.02 by reference.
There is no arrangement or understanding between Mr. Setian and any other persons pursuant to which he was selected to be an officer of the Company. Mr. Setian has no family relationships with any director or executive officer of the Company or any person nominated or chosen to become a director or executive officer of the Company. Mr. Setians compensation arrangements in his new role have not yet been determined.
Ms. Cynthia E. Bell, age 59, has been appointed President and General Manager of Minor Procedure Kits and Trays. Ms. Bell has served as Senior Director of Operations for the Company since 2011. Previously, Ms. Bell served as Director of Operations from April 2009 to January 2011 and Plant Manager from April 2008 to April 2009.
There is no arrangement or understanding between Ms. Bell and any other persons pursuant to which she was selected to be an officer of the Company. Ms. Bell has no family relationships with any director or executive officer of the Company or any person nominated or chosen to become a director or executive officer of the Company. Ms. Bells compensation arrangements in her new role have not yet been determined.
Mr. Charles L. Kelly, age 52, has been appointed as President and General Manager of Patient Care Products. Mr. Kelly served as the Companys Chief Financial Officer from April 2008 to March 2012. Prior to joining the Company, Mr. Kelly was employed by Chem RX Corporation, an institutional pharmacy serving long-term care facilities, serving as Chief Financial Officer from August 2006 to March 2008. Previously, Mr. Kelly held the position of Chief Financial Officer at Spotless Plastics USA Inc, a leader in plastics. Additional information about Mr. Kellys business experience is included under the heading Information About Our Executive Officers in the Companys Proxy Statement filed with the Securities and Exchange Commission on June 16, 2011 pursuant to Section 14(a) of the Securities Exchange Act of 1934, which description is incorporated in this Item 5.02 by reference.
There is no arrangement or understanding between Mr. Kelly and any other persons pursuant to which he was selected to be an officer of the Company. Mr. Kelly has no family relationships with any director or executive officer of the Company or any person nominated or chosen to become a director or executive officer of the Company. Mr. Kellys compensation arrangements in his new role have not yet been determined.
Item 7.01 Regulation FD Disclosure
On March 15, 2012, the Company issued a press release announcing that Mr. John Sheffield was appointed Chief Financial Officer and Corporate Secretary of the Company, effective as of March 19, 2012. A copy of the Companys March 15, 2012 press release is being furnished as exhibit 99.1 to this Form 8-K, and is incorporated by reference into this Item 7.01.
On April 19, 2012, the Company issued a press release announcing the establishment of three new strategic business units. A copy of the Companys April 19, 2012 press release is being furnished as exhibit 99.2 to this Form 8-K, and is incorporated by reference into this Item 7.01.
In accordance with General Instruction B.2 to Form 8-K, the information set forth in this Item 7.01 and in Exhibit 99.1 and Exhibit 99.2 shall not be deemed to be filed for the purposes of Section 18 of the Securities Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, unless the Company specifically states that the information is to be filed under the Exchange Act or incorporates it by reference into a filing under the Exchange Act or the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 | Press release, dated March 15, 2012 | |
99.2 | Press release, dated April 19, 2012 |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
MEDICAL ACTION INDUSTRIES INC. | ||
By: | /s/ John Sheffield | |
John Sheffield | ||
Chief Financial Officer |
Dated: April 24, 2012
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Exhibit 99.1
500 Expressway Drive South, Brentwood, NY 11717 | ||
Phone: 631.231.4600 | ||
www.medical-action.com |
CONTACT: | John Sheffield Chief Financial Officer | |
MEDICAL ACTION INDUSTRIES INC. | ||
(631) 231-4600 |
FOR IMMEDIATE RELEASE
Medical Action Announces Appointment of
John Sheffield as Chief Financial Officer
BRENTWOOD, NY, March 15, 2012 Medical Action Industries Inc. (NASDAQ/MDCI), a leading supplier of medical and disposable surgical products today announced the appointment of John Sheffield as Chief Financial Officer and Corporate Secretary effective March 19, 2012. In his role, Mr. Sheffield will join the executive team responsible for strategy, planning and operations, and will oversee the companys finance, accounting and investor relation functions.
Mr. Sheffield brings 20 years of financial, accounting and strategic transaction experience to Medical Action. He joins us from Bank of America Merrill Lynch where he was a senior investment banker providing strategic and financial advice primarily to middle market companies. In addition to Bank of America Merrill Lynch, Mr. Sheffield has worked with other premier investment banks providing advice on mergers and acquisitions as well as debt and equity financings. He has represented companies across several industries, with a particular focus on healthcare. Previously, Mr. Sheffield was Vice President of Corporate Development for ReAble Therapeutics (now
known as DJO Inc.), a portfolio company of The Blackstone Group and global manufacturer of orthopedic medical devices and services. He began his career as a Certified Public Accountant (CPA) with a predecessor of PricewaterhouseCoopers.
We are extremely excited to have John join our organization. Given Johns vast financial and strategic transaction experience, I am confident that his leadership will contribute significantly in the creation of an innovative platform to leverage our business and to take Medical Action to the next level as a dominant player in our industry, stated Paul D. Meringolo, President and CEO of Medical Action Industries Inc.
Medical Action is a leader in its field and has assembled an excellent senior management team to lead its continued growth, said Sheffield. I am honored to join Medical Action and its deep bench of talent on the finance team. Reporting to the CFO will be Brian Baker, Corporate Controller also responsible for SEC reporting; Vincent Colletti, Director of Internal Audit; and Victor Bacchioni, Operations Controller.
About Medical Action Industries Inc. - Medical Action is a diversified manufacturer and distributor of disposable medical devices and a leader in many of the markets where it competes. Its products are marketed primarily to acute care facilities in domestic and certain international markets. The Company has expanded its target market to include physician, dental and veterinary offices, out-patient surgery centers, long-term care facilities and laboratories. Medical Actions products are marketed nationally by its direct sales personnel and extensive network of healthcare distributors. The Company has preferred vendor agreements with national and regional distributors, as well as sole and multi-source agreements with group purchasing organizations. Medical Actions common stock trades on the NASDAQ Global Select Market under the symbol MDCI and is included in the Russell 2000 Index.
# # # #
This news release contains forward-looking statements that involve risks and uncertainties regarding Medical Actions operations and future results. Please see the Companys filings with the Securities and Exchange Commission, including, without limitation, the Companys Form 10-K and Form 10-Qs, which identify specific factors that would cause actual results or events to differ materially from those described in the forward-looking statements.
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Exhibit 99.2
500 Expressway Drive South, Brentwood, NY 11717 | ||
Phone: 631.231.4600 | ||
www.medical-action.com |
CONTACT: | John Sheffield Chief Financial Officer | |
MEDICAL ACTION INDUSTRIES INC. | ||
(631) 231-4600 |
FOR IMMEDIATE RELEASE
MEDICAL ACTION INDUSTRIES ANNOUNCES
PLAN TO REALIGN INTO STRATEGIC BUSINESS UNITS
BRENTWOOD, N.Y., April 19, 2012 Medical Action Industries Inc. (NASDAQ: MDCI), a leading supplier of medical and disposable surgical products today announced a plan to realign into strategic business units in order to increase focus on targeted market segments and accelerate growth. The transition is anticipated to take effect July 1, 2012.
The Company will be organized into three businesses: Custom Procedure Trays and Operating Room Products; Minor Procedure Kits and Trays; and Patient Care Products. Coinciding with this change is the appointment of three strong leaders from within the Company.
Richard Setian has been named President and General Manager of Custom Procedure Trays and Operating Room products. Since the acquisition of AVID Medical by the Company in August 2010, Mr. Setian has served as the Companys Vice President of Sales and Marketing. Prior to the acquisition, Richard led AVID as President and Chief Operating Officer to consistent growth for over ten years. He is an expert in the field of Custom Procedure Trays.
Cindy Bell has been appointed President and General Manager of Minor Procedure Kits and Trays. Cindy has served as Senior Director of Operations for Medical Action since 2010 preceded by other operational roles within the Company. Over that time, she has developed extensive expertise in our minor procedure kits and trays business.
Charles Kelly has been chosen as President and General Manager of the Patient Care products. For the last four years, Charles has held the position of Chief Financial Officer for Medical Action. Charles joined the Company with extensive experience in the plastics industry from Spotless Plastics USA Inc., a division of a global manufacturing and services company.
Robert DeSimone has also joined Medical Action as Vice President of Strategic Planning and Organizational Effectiveness. Prior to Medical Action, Robert was an executive consultant with Guttman Development Strategies, Inc., focusing on directing organizational and management development initiatives for corporations across diverse industries. He has over 21 years of experience working with executive leaders to create high performance teams through change management and transformational leadership. Roberts primary role is to manage all aspects of the realignment to ensure a seamless transition and to oversee the strategic planning process for the long term.
This is an exciting time for Medical Action. stated Paul D. Meringolo, President and Chief Executive Officer. As we face unique challenges in the industry, we are proactively positioning Medical Action to be successful in meeting the needs of our customers and strategic business partners. This change will enable us to focus on targeted market segments while relying on the support of a strong corporate infrastructure to generate sustainable growth.
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About Medical Action Industries Inc. - Medical Action is a diversified manufacturer and distributor of disposable medical devices and a leader in many of the markets where it competes. Its products are marketed primarily to acute care facilities in domestic and certain international markets. The Company has expanded its target market to include physician, dental and veterinary offices, out-patient surgery centers, long-term care facilities and laboratories. Medical Actions products are marketed nationally by its direct sales personnel and extensive network of healthcare distributors. The Company has preferred vendor agreements with national and regional distributors, as well as sole and multi-source agreements with group purchasing organizations. Medical Actions common stock trades on the NASDAQ Global Select Market under the symbol MDCI and is included in the Russell 2000 Index.
# # # #
This news release contains forward-looking statements that involve risks and uncertainties regarding Medical Actions operations and future results. Please see the Companys filings with the Securities and Exchange Commission, including, without limitation, the Companys Form 10-K and Form 10-Qs, which identify specific factors that would cause actual results or events to differ materially from those described in the forward-looking statements.
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