NewCare Health Corporation Agrees To Acquire IATROS
Health Network Inc.
ATLANTA, Ga., Dec. 23 /PRNewswire/ -- NewCare Health Corporation (Nasdaq: NWCA -
news), an operator of retirement centers, assisted living centers, acute care facilities, nursing homes
and rehabilitation hospitals, today announced it has agreed to acquire IATROS Health Network,
Inc. (Nasdaq: IHNI - news) for approximately $17 million in NewCare common stock.
The agreement is subject to execution of a definitive merger agreement and shareholder approval.
NewCare expects the transaction, which should close in the first quarter of 1998, to be accretive to
1998 year-end results.
Jim Sanregret, NewCare's Chief Financial Officer, said, ''This acquisition, along with others
planned, should ensure that NewCare's revenues will exceed our $100 million target for 1998 versus
the $35 million we will do this year.''
IATROS owns, leases or manages 12 facilities in the New England market with 1997 consolidated
revenues approximating $20 million and 1998 projected facility revenues of $37 million. The
Company also provides pharmacy and rehabilitation therapy services, and operates a medical supply
and durable medical equipment company with 1997 combined ancillary revenues annualized at $17
million.
Headquartered in Atlanta, NewCare Health Corporation provides senior residential care services
including long-term care, assisted living centers and independent-living centers. The Company's
long-term care facilities provide skilled nursing care and ancillary services, while its
assisted/independent living centers provide services to residents in need of varying degrees of
assistance with the activities of daily living. NewCare's rehabilitation hospital provides both acute
and skilled nursing care for its patients. NewCare operates 20 facilities in Georgia, Florida, Texas
and Kansas.
Certain of the matters discussed herein may contain forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ materially from expectations.
These and other risks are set forth in the reports filed by the Company with the Securities and
Exchange Commission.
For a free 1996 Annual Report please call 1-800-4-Annual (1-800-4-266-825) or request a copy
via the Internet at prars.com |
