BioScrip Buys HS Infusion Holdings

BioScrip Inc. BIOS said that it struck a deal to acquire HS Infusion Holdings Inc. in a synergistic, transformational and accretive transactions with considerable gains for all stake holders. Home solution is a privately held firm and the principal shareholder was KRG Capital Partners LLC. The transaction is expected to close in the third quarter. The terms of the transaction allows BioScrip to buy substantially all of the assets and assume certain liabilities of Home Solutions and its subsidiaries for total transaction consideration of $85.0 million at closing and additional contingent consideration in the form of restricted stock units. The company indicated that the Closing Consideration would consist of $80.0 million payable in cash, subject to certain adjustments and $5.0 million in shares of its common stock. BioScrip Chairman, Carter Pate, commented, "This highly compelling transaction will deliver meaningful benefits to our stakeholders and position the company extraordinarily well for future growth and strategic opportunities. We are energized by this combination and for the shared benefit of our patient-focused organizations. I also wish to thank Rick Smith for his leadership and his significant contributions to both BioScrip and the Home Infusion Industry. I look forward to continuing to work with Rick, Dan and the Board to grow the business and drive value." The company said that the transaction would be financed through the net proceeds from an equity offering to be initiated promptly under its existing shelf registration statement, subject to market conditions. It added that any excess proceeds from the offering following the acquisition would be primarily used to cut its outstanding indebtedness. BioScrip said that on a pro forma basis, the integrated firm would generate over $1 billion in revenue. The transaction would be accretive to its financial results and is estimated to generate $14-17 million of synergies approximately 12-18 months following the closing. The operating synergies are primarily related to supply chain efficiencies, infrastructure optimization and other corporate and organizational improvements. In the pre-market trading on Monday, the stock traded 7.07 percent down.