Looks like the ayes have it. Good fortune, everyone.
OWINGS MILLS, Md., and ORLANDO, Fla., Oct. 21 /PRNewswire/ -- Integrated
Health Services, Inc. (NYSE:IHS) and RoTech Medical Corporation
(NASDAQ:ROTC) jointly announced that they have completed their previously
announced merger. The stockholders of each company at separate, but
simultaneous, meetings have today approved the merger agreement pursuant to
which IHS acquired RoTech. Formal closing of the merger also occurred today.
IHS issued approximately 15.4 million shares of common stock in the
merger. The equity value of the transaction is approximately $508 million.
The total value of the transaction, including the assumption of RoTech's debt
by IHS and other financial obligations, is approximately $858 million.
The merger is expected to be accretive to IHS earnings per share. The
transaction also serves to strengthen the IHS balance sheet, reduce its
leverage, increase its margins and expand its services.
RoTech is the third largest provider of home respiratory services. Based
on their last reported quarter, RoTech has annualized revenues of
approximately $500 million and operates over 600 locations in 35 states. On a
proforma basis the consolidated company will have revenues of approximately
$2.6 billion and operate over 1,900 total post-acute locations in 46 states.
William P. Kennedy, Chairman and CEO of RoTech stated, "The management of
RoTech considers this an excellent opportunity for its patients, employees and
stockholders. The resources of IHS clearly position us to accelerate our
growth as well as offer additional services to our patients and payors."
Robert N. Elkins, M.D., Chairman and CEO of IHS, stated, "We are extremely
excited about completing the merger with RoTech. This will be an outstanding
transaction for us and is a perfect strategic fit. We intend to not only have
RoTech continue its acquisitions of smaller home respiratory companies but
also expect to expand RoTech's acquisition activities, expand RoTech
operations to urban markets and expand RoTech's operations to include more
managed care and insurance payors."
"RoTech and its management team have a proven track record of over 50%
compound annual growth rate in revenues and earnings and is recognized as a
quality provider of home respiratory services," added Dr. Elkins. "We believe
the addition of RoTech strengthens IHS both financially and operationally."
Integrated Health Services is a highly diversified health services
provider, offering a broad spectrum of post-acute medical and rehabilitative
services through its nationwide healthcare network. IHS's post-acute services
include home respiratory services, subacute care, inpatient and outpatient
rehabilitation, long term care and home nursing services. Supporting the full
continuum of healthcare needs, IHS currently operates over 1,900 post-acute
service locations in 46 states throughout the U.S.
Statements in this press release concerning the Company's business outlook
or future economic performances, anticipated profitability, revenues, expenses
or other financial items, anticipated cost synergies and product or service
line growth, together with other statements that are not historical facts, are
"forward-looking statements" as that term is defined under the Federal
Securities Laws. Any forward-looking statements are estimates, reflecting the
best judgment of IHS based upon currently available information and involve a
number of risks, uncertainties and other factors which could cause actual
results to differ materially from those stated in such statements. Risks,
uncertainties and factors which could affect the accuracy of such
forward-looking statements are identified in the public filings made with the
Securities and Exchange Commission, and forward-looking statements contained
in this press release or in other public statements of the Company should be
considered in light of those factors. There can be no assurance that these or
other factors will not affect the accuracy of such forward-looking statements. |
