BioScrip Closes Acquisition of HomeChoice Partners, Inc.
ELMSFORD, N.Y., Feb. 4, 2013 /PRNewswire/ -- BioScrip, Inc.
(NASDAQ: BIOS) today announced the February
1, 2013 closing of its previously announced agreement to
acquire HomeChoice Partners, Inc. ("HomeChoice"), a leading
provider of alternate-site infusion pharmacy services, for
$70.0 million in cash.
HomeChoice was a majority-owned subsidiary of DaVita HealthCare
Partners Inc. (NYSE: DVA). 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 expects to realize the value of a
future tax benefit estimated at $3.9
million as a result of the transaction.
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Headquartered in Norfolk, VA,
HomeChoice 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.
"We expect to immediately begin to integrate HomeChoice into our
Infusion Services segment to take advantage of increased purchasing
power, operating leverage and market synergies. HomeChoice is
an important part of our ongoing strategy to build our infusion
business through strategic and opportunistic acquisitions, which
meet our financial criteria and enable us to expand our national
footprint," stated Rick Smith,
President and Chief Executive Officer of BioScrip.
"We welcome the employees of HomeChoice to the BioScrip team.
Their reputation for providing outstanding customer service is an
important part of our focus and complements our culture as we
strive to grow our payor and referral relationships," concluded
Smith.
Outlook
As previously announced, HomeChoice is expected to generate
approximately $70 million in annual
revenue. Once fully integrated, this business should generate
Adjusted EBITDA margins between 12% and 14%. The company
estimates that an acquisition of this size can take 9 to 12 months
to fully integrate.
About BioScrip, Inc.
BioScrip, Inc. provides comprehensive infusion and home care
solutions. By partnering with patients, physicians, healthcare
payors, government agencies and pharmaceutical manufacturers we are
able to provide access to infusible medications and management
solutions. Our goal is to optimize outcomes for chronic and other
complex healthcare conditions and enhance the quality of patient
life. BioScrip brings clinical competence in providing high-touch,
comprehensive infusion and nursing services to patients in the most
convenient ways possible. Through our customer services and
treatments we aim to ensure the best possible therapy outcome.
Forward Looking Statements – Safe Harbor
This press release includes statements that may constitute
"forward-looking statements," including statements
regarding the Company's goals, performance and
strategy. These statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. You can identify these statements by the fact that
they do not relate strictly to historical or current facts.
Investors are cautioned that any such forward-looking statements
are not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from
those in the forward-looking statements as a result of various
factors. Important factors that could cause or
contribute to such differences include but are not limited to
risks associated with the Company's ability to integrate the
acquired business, as well as the risks described in the Company's
periodic filings with the Securities and Exchange Commission,
including the Company's annual report on Form 10-K for the year
ended December 31, 2011. The Company does not undertake
any duty to update these forward-looking statements after the date
hereof, even though the Company's situation may change in the
future. All of the forward-looking statements herein are
qualified by these cautionary statements.
Non-GAAP Financial Measures
The Company has included statements in this press release
regarding anticipated Adjusted EBITDA margin of HomeChoice
following consummation of the transaction. Adjusted EBITDA
margin is not a measurement of financial performance under
generally accepted accounting principles (GAAP) and should not
be used in isolation or as a substitute or alternative to net
income, operating income or any other performance measure derived
in accordance with GAAP, or as a substitute
or alternative to cash flow from operating activities or a
measure of the Company's liquidity. In addition, the Company's
definition of Adjusted EBITDA margin may not be comparable to
similarly titled non-GAAP financial measures reported by other
companies. Adjusted EBITDA margin, as defined by the
Company, represents the ratio of net income before net
interest expense, income tax expense, depreciation and
amortization, stock-based compensation expense, acquisition,
integration, transitional expenses, and restructuring-related
expenses divided by revenue. Management believes this
non-GAAP financial measure provides additional important insight
into the Company's ongoing operations and meaningful metrics
to evidence the Company's continuing profitability trend.
SOURCE BioScrip, Inc.