BioScrip to Sell Home Health Services Business to LHC Group
Increases BioScrip's Focus on Core Home Infusion Platform
ELMSFORD, N.Y., Feb. 3, 2014
ELMSFORD, N.Y., Feb. 3, 2014 /PRNewswire/ --BioScrip^®, Inc. (NASDAQ:
BIOS)today announced that it has entered into a definitive agreement to sell
its Home Health business, known as Deaconess HomeCare, to LHC Group, Inc.
(NASDAQ: LHCG) for $60 million in cash.
Net proceeds from the sale will be used to pay down debt, and BioScrip expects
the transaction to be accretive to its earnings in 2014. For the last twelve
months ending September 30, 2013, the Home Health business recorded net
revenues of $72.6 million. The transaction is expected to close by the end of
the first quarter of 2014, subject to customary closing conditions.
"This transaction represents another milestone in our plans to position
BioScrip as a leader in the home infusion industry," said Rick Smith,
President and Chief Executive Officer of BioScrip. "As we have shifted our
focus toward infusion services, we have carefully considered how best to
foster continued growth and success at each of our operating segments, and we
believe this transaction is a win for both Deaconess and the Company as a
whole. This transaction will enhance BioScrip's financial flexibility to
further benefit from the scale we built through our three recent infusion
acquisitions, which have collectively deepened our strong clinical
capabilities and customer relationships and provided us with a solid
foundation from which to grow. We believe our infusion strategy is delivering
results, and going forward we remain focused on building our reputation for
clinical excellence and driving profitability by optimizing the value of our
remaining assets and capitalizing on the solid fundamentals of our infusion
Mr. Smith continued, "We believe LHC Group is a natural fit for the Deaconess
family, which is a leader in its own right. We appreciate all that the Home
Health employees have accomplished—today's transaction is due to their
success. LHC Group is one of the top home health services providers in the
U.S. and shares a common vision with the Home Health business. By being part
of LHC Group, Deaconess will be even better positioned to realize its full
Cain Brothers & Co., LLC acted as BioScrip's financial advisor in connection
with the transaction and Polsinelli PC acted as BioScrip's legal advisor.
About BioScrip, Inc.
BioScrip, Inc. is a leading national provider of infusion and home care
solutions. BioScrip partners with physicians, healthcare payors, government
agencies, hospital systems and pharmaceutical manufacturers to provide
patients access to post-acute care services. BioScrip operates with a
commitment to bring customer-focused pharmacy and related healthcare infusion
therapy services into the home or alternate-site setting. By collaborating
with the full spectrum of healthcare professionals and the patient, BioScrip
provides cost-effective care that is driven by quality, customer service, and
values that promote positive outcomes and an enhanced quality of life for
those it serves. BioScrip provides its infusion and home care services from
108 locations across 29 states.
FORWARD LOOKING STATEMENTS
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 consummate the transaction
involvingLHC Group, Inc., 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 31,2012.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
Investor and Media Contacts
Chief Financial Officer, BioScrip, Inc.
SOURCE BioScrip, Inc.
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