BioScrip Closes Acquisition of HomeChoice Partners, Inc.
ELMSFORD, N.Y., Feb. 4, 2013
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.
(Logo: http://photos.prnewswire.com/prnh/20130117/NY44138LOGO )
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
"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.
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 regardingthe Company'sgoals, 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 causeor contribute tosuch 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 measurementof financial
performance under generally accepted accounting principles (GAAP) and should
not beused in isolation or as a substitute or alternative to net income,
operating income or any other performance measure derived in accordance with
GAAP, or asa substitute oralternative 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
definedby 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 andmeaningful metrics to evidence the Company's
continuing profitability trend.
SOURCE BioScrip, Inc.
Contact: Hai Tran, BioScrip, Inc., +1-952-979-3768; Lisa Wilson, In-Site
Communications, Inc., +1-212-759-3929
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