BioScrip Completes Acquisition of Home Solutions
September 09 2016 - 4:43PM
BioScrip, Inc. (NASDAQ:BIOS) ("BioScrip" or the "Company"), a
leading national provider of infusion and home care management
solutions, today announced that it has completed the acquisition of
HS Infusion Holdings, Inc. ("Home Solutions"), enhancing its
position as a leading provider of home infusion services.
The combination of BioScrip and Home Solutions brings together
two highly complementary infusion services with an enhanced focus
on higher margin, core infusion therapies. As a combined company,
BioScrip expects to generate over $1 billion in annual revenue for
the fiscal year ending December 31, 2017. The transaction is
expected to be accretive to BioScrip’s financial results and is
estimated to generate $14-17 million of synergies in approximately
12-18 months following the closing. The additional financial
contribution from Home Solutions, including anticipated synergies,
is anticipated to strengthen BioScrip’s balance sheet and leverage
profile, improve BioScrip's strategic flexibility and competitive
positioning and realign the Company as a growth platform in the
attractive post-acute care segment.
Effective with the completion of the transaction, Daniel
Greenleaf is serving as President and Chief Executive Officer of
BioScrip and a member of the Company’s Board of Directors, and Rick
Smith, who has served as BioScrip’s Chief Executive Officer, now
serves as Vice Chairman of the Board of Directors.
“We are pleased to complete this compelling combination and are
moving forward as one company with an enhanced focus on core
infusion services,” said Mr. Greenleaf. “We are committed to our
mission to provide national reach and local care, and look forward
to realizing the meaningful benefits this transaction provides for
our employees, customers and patients. We are confident in
our integration plans and our commitment to achieving the expected
synergies and financial targets. Overall, we are well-positioned to
continue to be a leading infusion company in the attractive
post-acute segment. I am honored to lead our combined team of
talented employees and look forward to working to advance
BioScrip’s growth, create value and drive further success.”
As previously announced on September 2, 2016, BioScrip and Home
Solutions will seek BioScrip stockholder approval to increase
BioScrip’s authorized share capital to allow the company to issue
certain contingent purchase considerations, if earned. BioScrip
will announce a date for the Special Meeting of Stockholders in due
course.
ABOUT BIOSCRIPBioScrip, Inc. is a leading
national provider of infusion and home care management solutions.
BioScrip partners with physicians, hospital systems, skilled
nursing facilities, healthcare payors, 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 clinical
excellence, customer service, and values that promote positive
outcomes and an enhanced quality of life for those it serves.
Forward-Looking Statements - Safe HarborThis
press release includes statements that may constitute
"forward-looking statements,” that involve substantial risks and
uncertainties. 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. In some cases,
forward-looking statements can be identified by words such as
"may," "should," "could," "anticipate," "estimate," "expect,"
"project," "outlook," "aim," "intend," "plan," "believe,"
"predict," "potential," "continue" or comparable terms. Because
such statements inherently involve risks and uncertainties, actual
future results may differ materially from those expressed or
implied by such forward-looking statements. 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 acquisition of Home
Solutions, the Company's ability to grow its core Infusion
revenues, the Company's ability to continue to experience positive
results from its financial improvement plan to reduce operating
costs; reductions in federal, state and commercial reimbursement
for the Company's products and services; increased government
regulation related to the health care and insurance industries; as
well as the risks described in the Company's periodic filings with
the Securities and Exchange Commission. 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.
For Further Information:
Investor Contact
Jeffrey M. Kreger
BioScrip Chief Financial Officer
(720) 697-5200
jeffrey.kreger@bioscrip.com
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