logo
  Join        Login             Stock Quote

Bioscrip (BIOS) To Buy Davita Healthcare's (DVA) Unit Homechoice Partners

 December 13, 2012 09:19 AM
 


(By Balaseshan) BioScrip Inc. (NASDAQ: BIOS) said it has agreed to buy HomeChoice Partners Inc., a majority-owned subsidiary of DaVita HealthCare Partners Inc. (NYSE: DVA), for $70 million in cash.

The purchase price is subject to adjustment pursuant to the terms of the agreement including potential additional consideration based on the results of operations.

BioScrip also exBioScrippects to realize the value of a future tax benefit estimated at $3.9 million as a result of the transaction.

HomeChoice is expected to generate about $70 million in annual revenue. Once fully integrated, this business should generate Adjusted EBITDA margins of 12% to 14%. The company estimates that an acquisition of this size can take 9 to 12 months to fully integrate.

[Related -Japan Surges Near 5-Year Highs]

"This transaction is also consistent with our stated goal of building our infusion business through strategic and opportunistic acquisitions, which meet our financial criteria and enable us to expand our national footprint," stated Rick Smith, Chief Executive of BioScrip.

HomeChoice, which is headquartered in Norfolk, Virginia, generates about $70 million in annual revenue, services approximately 15,000 patients annually and has fourteen infusion pharmacy locations in Pennsylvania, Washington DC, Maryland, Virginia, North Carolina, South Carolina, Georgia, Missouri, and Alabama.

The company expects the transaction will close in the first quarter of 2013.

[Related -Stocks End Higher Amid Health-Care Gains, Orders Data; H-P (HPQ) Drops]

BioScrip is a provider of pharmacy and home health services, which partners with patients, physicians, hospitals, healthcare payors and pharmaceutical manufacturers to provide clinical management solutions and the delivery of prescription medications and home health services.

BIOS closed Wednesday's regular session down 1.92% at $10.71. The stock has been trading between $5.17 and $11.06 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageBuffett's Market Indicator Flashes Red, Prepare To Sell

With each passing month, it's becoming evident that the current bull market has slowed from a gallop to a read on...

article imagePBoC joins other major central banks with unconventional monetary policy action

Softer than expected economic growth in China (see discussion) has finally spurred the PBoC into action. read on...

article imageA Buyback Boost?

Are stock buybacks the only thing keeping this bull market read on...

article imageGold Slides On Perfect Storm For Dollar

For all the anticipation surrounding the delivery of the Fed’s statement in the run-up to the September read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.