Companies in the New
Companies in the New
Baxter acquires businesses from Sabratek
Baxter Healthcare Corp.’s (Deerfield, IL) I.V. Systems/Medical Products Group unit signed a definitive agreement to acquire several businesses from Sabratek Corp. (Skokie, IL) for about $40 million to $50 million.
Baxter, a unit of medical products manufacturer Baxter International, said last week it decided to acquire the businesses to expand its infusion product offerings to alternate-site customers, such as home care providers, surgery centers, clinics, nursing homes, and subacute care facilities.
As part of the transaction, Baxter will acquire Sabratek’s 3030 Stationary Infusion Pump and related accessories, the 6060 Ambulatory Infusion Pump and related accessories, the ROCAP prefilled syringe products, and MediView and Pumpmaster accessories that provide diagnostic and telemetry capabilities for remote monitoring and programming.
CB Richard Ellis sells home care agency
CB Richard Ellis (Los Angeles), a real estate services company, sold home health agency Preferred Home Health for $3.5 million. The agency will provide home care services for Casa Del Mar (Boca Raton, FL) and Hamilton House & The Inn (Plantation, FL), two assisted and independent living communities that CB also recently sold.
Charterhouse buys MP TotalCare
Charterhouse Group International has closed a deal to buy home respiratory care company MP TotalCare (Tampa, FL), which it says it will use as a platform company in the home care field. MP has annual revenues of $25 million.
The deal, said Charterhouse, was composed of 50% senior debt. The remainder of the capital from the deal came from the firm’s Charterhouse Equity Partners III Fund, which the company says is about 45% invested, and from MP TotalCare Management, which provided about 10% of the equity portion.
Charterhouse Managing Director Thomas Dircks told Buyouts that Charterhouse had been looking at home care for a number of years. The market for home respiratory care is projected to rise 10% annually over the next five years, he said, and he expects MP to grow at least as quickly.
Chemed to offer its shareholders securities
Chemed (Cincinnati) said last week it will offer its common shareholders convertible trust preferred securities in exchange for up to 2 million outstanding common shares. The offer is scheduled to expire Jan. 24, Chemed officials said.
Chemed said the preferred securities will be exchanged for Chemed common shares on a 1-to-1 ratio and will have a liquidation value of $27 per preferred security. The securities will be convertible, at the option of holders, into Chemed common shares at a conversion price equivalent to $37 per share, said Chemed.
IHS’ trading on NYSE halted
Integrated Health Services (IHS; Sparks, MD) said it was notified by the New York Stock Exchange that it has fallen below its continued listing criteria. IHS has a total stockholders’ equity less than $50 million and a 30-day average share price of less than $1, the NYSE said. The company’s common stock was suspended from trading on the NYSE prior to the opening of the market last Thursday, IHS said.
IHS previously said it is in discussions with its lenders regarding the restructuring of its debt, and the company said the discussions are ongoing. IHS said it believes, however, its existing common stock will have little or no value.
FDA clears Mallinckrodt for marketing Helios
Mallinckrodt (St. Louis) received clearance from the Food and Drug Administration (Washington) to market its Puritan-Bennett Helios oxygen system that it says provides comfort, convenience, and mobility to oxygen patients. Mallinckrodt said it expects to start shipping products in 1Q00.
TLC gets new lender
Tender Loving Care Health Care Services (TLC; Lake Success, NY) has secured a new financing relationship with National Century Financial Enterprises. The new relationship replaces its present lender, TLC said. National Century has purchased and serviced more than $12 billion in healthcare receivable since its inception in 1991.
As part of a $60 million financing commitment, the company realized $33 million on its initial sale of accounts receivable, less than $8 million held in escrow. The company has fully repaid its senior lender, TLC said. The remainder of the proceeds will be used to make payments on other company indebtedness, including Medicare and Medicaid, and for continuing working capital purposes. The remaining committed availability provides the company with additional liquidity for growth and acquisition needs.
TLC also said it has reached an agreement with the Health Care Financing Administration (HCFA; Baltimore) for a long-term repayment plan that will be in effect through September 2004. The plan allows the company to repay PIP overpayments and audit adjustments in a structured format with a predictable cash flow, TLC said. TLC was spun off in October from its parent company, Staff Builders.
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