ELMSFORD, N.Y., Feb. 3, 2014 /PRNewswire/ -- BioScrip ®, Inc. (NASDAQ: BIOS) today announced that it has entered into a definitive agreement to sell its Home Health business, known as Deaconess HomeCare, to LHC Group, Inc. (NASDAQ: LHCG) for $60 million in cash.
Net proceeds from the sale will be used to pay down debt, and BioScrip expects the transaction to be accretive to its earnings in 2014. For the last twelve months ending September 30, 2013, the Home Health business recorded net revenues of $72.6 million. The transaction is expected to close by the end of the first quarter of 2014, subject to customary closing conditions.
"This transaction represents another milestone in our plans to position BioScrip as a leader in the home infusion industry," said Rick Smith, President and Chief Executive Officer of BioScrip. "As we have shifted our focus toward infusion services, we have carefully considered how best to foster continued growth and success at each of our operating segments, and we believe this transaction is a win for both Deaconess and the Company as a whole. This transaction will enhance BioScrip's financial flexibility to further benefit from the scale we built through our three recent infusion acquisitions, which have collectively deepened our strong clinical capabilities and customer relationships and provided us with a solid foundation from which to grow. We believe our infusion strategy is delivering results, and going forward we remain focused on building our reputation for clinical excellence and driving profitability by optimizing the value of our remaining assets and capitalizing on the solid fundamentals of our infusion service model."
Mr. Smith continued, "We believe LHC Group is a natural fit for the Deaconess family, which is a leader in its own right. We appreciate all that the Home Health employees have accomplished—today's transaction is due to their success. LHC Group is one of the top home health services providers in the U.S. and shares a common vision with the Home Health business. By being part of LHC Group, Deaconess will be even better positioned to realize its full potential."