What's next for LMI?
MOUNT VERNON, N.Y. – After a planned merger fell apart shortly after it was announced, industry watchers say they are waiting to see what Landauer Metropolitan, Inc. (LMI) will do next.
In May, LMI announced that it planned to merge with the Plainview, N.Y.-based Allcare Services, but in July, Lou Rocco confirmed to HME News that the deal did not go through and that he had resigned as CEO and president of LMI. Other requests for comment from LMI and Allcare were not answered.
“My gut feeling is that the deal wasn’t structured right, so they are just throwing everything out and starting over again,” said one source.
LMI has been backed by Canadian private equity firm Clairvest since 2002, when owner Alan Landauer sold it for a minority share in the company for $7.63 million. Since then, the provider has grown into a regional powerhouse, serving 350,000 patients.
The big question now: What’s next for LMI? The provider was not awarded any Round 2 contracts, part of what made the deal with Allcare, which accepted 63 contracts, so attractive.
“One thing I am seeing out of all of this is that what’s going to emerge is something completely different than what they’ve had in the past,” said another source. “I think they are working on it and I think we will hear something soon.”
Sources also speculate the deal with Allcare may not be dead in the water.
“I wouldn’t be surprised if that deal gets resurrected in the near future,” said one source.