BioScrip Inc., an Elmsford-based provider of drug infusion therapy and home care nursing services, closed this month on its $70 million cash purchase of HomeChoice Partners Inc., a provider of alternate-site infusion pharmacy services headquartered in Norfolk, Va.
HomeChoice was a majority-owned subsidiary of DaVita HealthCare Partners Inc.
The purchase price can be adjusted under the terms of the agreement, including potential additional payment based on the results of operations. BioScrip also expects a future tax benefit estimated at $3.9 million from the deal.
HomeChoice serves about 15,000 patients annually and has fourteen infusion pharmacy locations in Pennsylvania, Washington, D.C., Maryland, Virginia, North Carolina, South Carolina, Georgia, Missouri and Alabama.
Rick Smith, president and CEO of BioScrip, in an announcement of the closing called the HomeChoice purchase “an important part of our ongoing strategy to build our infusion business through strategic and opportunistic acquisitions which meet our financial criteria and enable us to expand our national footprint.” He said the Elmsford company expects to immediately begin to integrate HomeChoice into its infusion services segment “to take advantage of increased purchasing power, operating leverage and market synergies.” The new business is expected to be fully integrated in nine to 12 months.
HomeChoice is expected to generate approximately $70 million in annual revenue and adjusted earnings before interest, taxes, depreciation and amortization margins between 12 percent and 14 percent.
