CHS deal moves forward

Sunday, September 7, 2008

By Theresa Flaherty Managing Editor
CONSHOHOCKEN, Pa. - MBF Healthcare Acquisition's mega $420 million deal to acquire home infusion giant Critical Homecare Solutions remains a go, thanks to new financing MBF secured last week.

In February, MBF, a special purpose acquisition company, and CHS agreed to the takeover. The deal was originally expected to close in June or July but the original letter of intent expired July 31, 2008.

The pushback doesn't indicate a problem with the deal, said Jonathan Sadock, a managing partner with Philadelphia-based Paragon Ventures, an M&A firm.

"Sometimes they need to revisit either the capital structure or the valuation," he said. "It could be the structure of the transaction needed to change in order for it to get funding in the manner it wants with the amount of equity they want to put in."

While the purchase price remains the same, the value of the restructured deal was reduced from $534 million to $479 million.

Once the deal is finalized, MBF will change its name to Critical Homecare Solutions. Bob Cucuel, CHS president and CEO, will lead the combined company.

MBF officials expect the deal to close in October.