BioScrip Inc (NASDAQ:BIOS) And LHC Group Inc. (LHCG) Announce Completion Of $59.5 M Deal


Dallas, Texas 04/10/2014 (FINANCIALSTRENDS) – BioScrip Inc (NASDAQ:BIOS) announced on 1st April that it has completed the sale of its two subsidiaries Deaconess Home Health Services Group  and and Elk Valley Health Services to LHC Group Inc. (LHCG) as previously announced. The deal size is pegged at $59.5 million and the net proceeds generated from the sale is slated to be used by the firm to retire a part of its outstanding loans.

Expressing satisfaction at the event free conclusion of the sale transaction, BioScrip Inc (NASDAQ:BIOS) President and Chief Executive Officer Rick Smith has been quoted to have said that, “With the completion of the Home Health transaction, we now have additional financial flexibility to continue building on BioScrip’s solid foundation in home infusion services. We continue to position BioScrip as a leader in the home infusion industry. We look forward to optimizing the value of our assets while maintaining our reputation for clinical excellence.”

Mr Smith went on to express his gratitude towards the employees of the sold unit Deaconess and expressed confidence that under the new management, the business unit will grow stronger. Through the entire sale process, BioScrip Inc (NASDAQ:BIOS) was assisted by Cain Brothers & Co., LLC in its capacity of financial advisor, while the legal aspect was looked into by Polsinelli PC on behalf of the firm.

With the latest acquisition, LHC Group Inc. (LHCG) will have added 32 new health providing agencies in four states, thus beefing up its total network of care providing centres across the 26 states of the country to a impressive 340. The combined revenues of the bought out firms for the full year was estimated to be $72 million. The buyout is expected to add an incremental 5 to 10 cents per share in the groups 2014 earnings.

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