Infusion-therapy services company BioScrip (BIOS) agreed to buy rival Option Care Enterprises, creating one of the largest independent home-therapy companies in the U.S.
Option Care is owned by investment funds affiliated with Madison Dearborn Partners and Walgreens Boots Alliance (WBA) .
On completion of the all-stock deal, MDP funds and WBA will own roughly 80% of the combined publicly traded company on a fully diluted basis, with current BioScrip shareholders holding the remainder, the companies said. Option Care CEO John Rademacher will lead the combined company.
"This is a compelling and complementary fit of two leading players in the U.S. infusion market," BioScrip CEO Daniel Greenleaf said in a statement. "Our expanded reach and broader array of offerings provide a key competitive advantage at a time when the demand for home and alternate site infusion services continues to grow."
Investors seemed to agree, pushing up BioScrip stock by 3.7% to $3.62 on Friday. Shares has risen as much as 20% in premarket trading.
Separately, BioScrip on Friday reported a fiscal fourth-quarter loss from continuing operations of $15.4 million, or 12 cents a share, compared to $15.1 million, or 14 cents, in the prior year. Net sales were $183.6 million compared to $178.5 million in the fourth quarter of 2017.
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