DaVita to Acquire Physicians Dialysis, Inc.
July 22 2004 - 2:00AM
PR Newswire (US)
DaVita to Acquire Physicians Dialysis, Inc. EL SEGUNDO, Calif.,
July 22 /PRNewswire-FirstCall/ -- DaVita Inc. (NYSE:DVA), announced
that it has entered into a definitive agreement to acquire
Physicians Dialysis, Inc. ("PDI"), in a cash-for-stock merger
transaction valued at approximately $150 million. The Company
expects to close the transaction by the end of the third quarter.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020729/DAVITALOGO )
DaVita's acquisition of PDI will add 24 dialysis centers to its
operations and several acute services agreements, representing a
total census of approximately 1,700 patients. This transaction
strengthens DaVita's presence in the states of Michigan, Texas,
Pennsylvania, Alabama, New Jersey and West Virginia, while adding a
new presence in two additional states, Connecticut and
Massachusetts. PDI's current annualized revenue is approximately
$75 million and current dialysis revenue per treatment is
approximately $286. The acquisition is anticipated to be EPS
neutral in the first year. Completion of the transaction is subject
to customary closing conditions including the receipt of bank
approval under the terms of DaVita's credit facility. The Company
also intends to amend its credit facility and increase the term
debt by $250 million in order to fund ongoing acquisition
activities and potential share repurchases over time. The Company
has received Hart-Scott-Rodino antitrust clearance for this
transaction. Kent Thiry, Chairman and CEO of DaVita, commented,
"PDI is a leading regional company in our industry and represents
an important strengthening of our presence in several core
markets." He added, "The two companies share a common focus on
quality and culture. The transaction fits with the Company's target
strategies and is expected to provide longer-term market
synergies." Mr. Thiry also said, "We are looking forward to joining
the dedicated teammates and physicians associated with PDI in
continuing to provide quality care to their ESRD patients and to
expanding our relationships with PDI medical directors and the
respected nephrologists in these communities." Patrick Ryan,
Chairman and CEO of Physicians Dialysis, stated, "This is an
important day for the company as all our team has worked hard
together to build PDI. We share a common mission and culture with
DaVita. The company, under Kent's leadership, will have the
resources to continue to build upon our foundation, while ensuring
that our patients continue to receive superior quality care and our
team members have outstanding opportunities for professional
growth." The Company will discuss further details of this
transaction on its second quarter earnings conference call
scheduled for Tuesday, August 3, 2004; at 12:00 p.m. EDT. The dial
in number for this call is 800-399-4406 and a web cast can be
accessed at http://www.davita.com/. Investors who are unable to
listen to the DaVita conference call will be able to access a
replay via our web site at http://www.davita.com/. This release
also contains forward-looking statements. Factors which could
impact future results include the uncertainties associated with
governmental regulation, general economic and other market
conditions, and the risk factors set forth in the Company's SEC
filings, including its Form 10-Q for the quarter ended March 31,
2004. The forward-looking statements should be considered in light
of these risks and uncertainties. These risks include those
relating to: -- the concentration of profits generated from PPO and
private indemnity patients and from the administration of
pharmaceuticals, -- possible reductions in private and government
reimbursement rates, changes in pharmaceutical practice patterns or
reimbursement policies, -- the Company's ability to maintain
contracts with physician medical directors, and -- legal compliance
risks, such as the ongoing review by the U.S. Attorney's Office and
HHS Office of the Inspector General in Philadelphia.
http://www.newscom.com/cgi-bin/prnh/20020729/DAVITALOGO
http://photoarchive.ap.org/ DATASOURCE: DaVita Inc. CONTACT: LeAnne
Zumwalt, Investor Relations of DaVita Inc., +1-310-536-2420 Web
site: http://www.davita.com/
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