BioScrip Inc. (BIOS) announced that it has entered into a definitive agreement to acquire the business of CarePoint Partners Holdings LLC and its subsidiaries for $223 million in cash, subject to certain adjustments. CarePoint Partners is a provider of home and alternate-site infusion therapy for patients with complex, acute and chronic illnesses.
BioScrip also expects to realize the value of a future tax benefit estimated at $45 million as a result of the transaction, yielding a net purchase price of $178 million.
Headquartered in Cincinnati, Ohio, CarePoint Partners is expected to generate approximately $160 million in annual revenue, services approximately 20,500 patients annually, and has 28 sites of service in nine states within the East Coast and Gulf Coast regions. With the addition of CarePoint Partners, BioScrip will provide home infusion services to approximately 100,000 patients. Once fully integrated, this business should generate Adjusted EBITDA margins between 12% and 14%.
BioScrip estimates that an acquisition of this size can take 12 to 15 months to fully integrate.
The transaction is subject to customary closing conditions, including regulatory approval. BioScrip expects the transaction will close in the third quarter of 2013.
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