CCSE, Landauer Hospital Supply complete merger agreement
CCSE, Landauer Hospital Supply complete merger agreement
By MEREDITH BONNER
HHBR Editor
Community Care Services (CCSE; Mount Vernon, NY) will officially become a subsidiary of Landauer Hospital Supplies (Harrison, NY).
CCSE and Landauer have completed the merger agreement the companies entered in June. Landauer is a privately owned hospital supply company. The merger received shareholder approval in a special meeting Dec. 9, CCSE said. Pursuant to the merger, each of the company’s shareholders will receive $1.20 per share, and CCSE and Metropolitan Respiratory Services (Mount Vernon, NY), which CCSE bought in May 1997, will become a new subsidiary called Landauer-Metropolitan.
As CCSE previously said, its common stock will no longer be publicly traded, and the company will cease to be subject to the reporting requirements of the Securities Exchange Act of 1934.
The newly formed company, Landauer-Metropolitan, is the largest independent provider of durable medical equipment, rehab, and respiratory equipment and supplies in the New York metropolitan area, CCSE said. With the completion of the merger, CCSE will expand into 14 contiguous counties in the area and will increase its portfolio of HMO contracts to 75.
Landauer announced its interest in CCSE in February when Alan Landauer, chairman and owner of Landauer, bought a majority of CCSE’s stock. He was named chairman of CCSE’s board in April, and later in the month, CCSE announced that it had entered into a letter of intent with LTTR Home Care, another subsidiary of Landauer, in which LTTR would acquire CCSE.
The new company will be run by Louis Rocco, who was named president, and Gary Spirgel, who was named COO. Saverio Burdi was named executive vice president of sales. In addition, Elia Guarneri was named CFO, and Rob Garnsey was named vice president of operations.
Pinnacle Partners (Miami), a healthcare investment banking firm, has acted as financial advisor to the company and to the special committee that was appointed to consider the merger, and has provided a fairness option with respect to the fairness of the proposed merger to the company’s shareholders.
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