ELMSFORD, N.Y., Feb. 4, 2013 /PRNewswire/ -- BioScrip, Inc. (NASDAQ: BIOS) today announced the February 1, 2013 closing of its previously announced agreement to acquire HomeChoice Partners, Inc. ("HomeChoice"), a leading provider of alternate-site infusion pharmacy services, for $70.0 million in cash. HomeChoice was a majority-owned subsidiary of DaVita HealthCare Partners Inc. (NYSE: DVA). The purchase price is subject to adjustment pursuant to the terms of the agreement including potential additional consideration based on the results of operations. BioScrip also expects to realize the value of a future tax benefit estimated at $3.9 million as a result of the transaction.
Headquartered in Norfolk, VA, HomeChoice services approximately 15,000 patients annually, and has fourteen infusion pharmacy locations in Pennsylvania, Washington, DC, Maryland, Virginia, North Carolina, South Carolina, Georgia, Missouri, and Alabama.
"We expect to immediately begin to integrate HomeChoice into our Infusion Services segment to take advantage of increased purchasing power, operating leverage and market synergies. HomeChoice is an important part of our ongoing strategy to build our infusion business through strategic and opportunistic acquisitions, which meet our financial criteria and enable us to expand our national footprint," stated Rick Smith, President and Chief Executive Officer of BioScrip."We welcome the employees of HomeChoice to the BioScrip team. Their reputation for providing outstanding customer service is an important part of our focus and complements our culture as we strive to grow our payor and referral relationships," concluded Smith. Outlook As previously announced, HomeChoice is expected to generate approximately $70 million in annual revenue. Once fully integrated, this business should generate Adjusted EBITDA margins between 12% and 14%. The company estimates that an acquisition of this size can take 9 to 12 months to fully integrate. About BioScrip, Inc. BioScrip, Inc. provides comprehensive infusion and home care solutions. By partnering with patients, physicians, healthcare payors, government agencies and pharmaceutical manufacturers we are able to provide access to infusible medications and management solutions. Our goal is to optimize outcomes for chronic and other complex healthcare conditions and enhance the quality of patient life. BioScrip brings clinical competence in providing high-touch, comprehensive infusion and nursing services to patients in the most convenient ways possible. Through our customer services and treatments we aim to ensure the best possible therapy outcome.