Lincare scoops up PSA's O2 biz
CLEARWATER, Fla. - Lincare will pay $35.2 million in cash for the respiratory-therapy division of Pediatric Services of America, the Norcross, Ga.-based PSA announced in an Aug. 28 release.
PSA's respiratory division had revenue of about $14.3 million in the third quarter of 2006, about one-third of the company's total revenue. PSA sold the division to focus on its core business, pediatric nursing, the company stated in the release.
"Considering the current reimbursement climate related to our respiratory therapy equipment and services segment, we believe that the valuation given to this business by Lincare is superior to the valuation we could achieve independently," stated Daniel Kohl, PSA's president and CEO. "We remain devoted to delivering the highest quality patient care in pediatric private-duty nursing and pediatric day treatment centers and will continue to concentrate on expanding those segments via start-ups and acquisitions."
PSA and Lincare expect to finalize the deal in 60 days. Lincare will pay $31.2 million upon closing, with the remaining $4 million contingent on PSA's respiratory division meeting certain performance goals.
Last year, PSA sold its pharmacy division to Medco Health Solutions. It has more than 100 branch offices in 20 states.