Reuters NewMedia - February 2, 2012
* Total deal valued at $225 mln
* Walgreen to pay $170 mln in cash
* Deal to close by late April
* BioScrip shares rise as much as 19 pct
Feb 2 (Reuters) - BioScrip Inc said it will sell certain assets
of its community specialty pharmacies and centralized specialty
and mail service pharmacy businesses to Walgreen Co, the largest
U.S. drugstore chain, for about $225 million.
The news sent the specialty pharmaceutical healthcare company's
shares up as much as 19 percent to $6.96, their highest in more
than three months, on Thursday morning on the Nasdaq.
The deal includes about $170 million in cash at closing and
retention by BioScrip of associated accounts receivable and
working capital liabilities of about $55 million.
BioScrip said it could receive up to an additional $60 million
based on events related directly or indirectly to Walgreen's
retention of the businesses.
BioScrip had said early last year that it was looking at
strategic options to reduce rising costs, and went through a
series of management changes.
The company said it will use proceeds from the deal -- which is
expected to close by April -- to expand its infusion pharmacy
footprint and pay down debt.
Infusion/home health pharmacy -- which provides injectable
medications and related services in a home setting -- added 25
percent to BioScrip's third-quarter revenue.
According to the National Home Infusion Association (NHIA), the
alternate-site infusion therapy sector in the United States is
currently estimated to be about $9 billion to $11 billion per
year, BioScrip said.
For the nine-months ended Sept. 30, the businesses being sold to
Walgreen reported revenue of $938.5 million and a gross profit of
BioScrip's community specialty pharmacy business is a national
network with 30 locations in 16 states across the United States
and the District of Columbia, primarily serving HIV, oncology and
Elmsford, New York-based BioScrip said it expects the transaction
to add to its 2012 earnings.
MTS Health Partners acted as financial adviser to BioScrip while
Peter J. Solomon Co acted as financial adviser to Walgreen.