America Service Group Inc. Announces Acquisition of Correctional Health Services, Inc.Business Editors NASHVILLE, Tenn.--(BW HealthWire)--April 24, 2000 America Service Group Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ASGR ASGR America Service Group Inc. ASGR Armed Services Graves Registration Office ) today announced that it has signed an agreement to acquire the stock of Correctional Health Services health services Managed care The benefits covered under a health contract , Inc. (CHS (Cylinder Head Sector) An earlier method of addressing a hard disk by referencing all three physical elements of the drive. It was superseded by logical block addressing (see LBA). ) for a purchase price of $17 million cash. Closing of the transaction, which is subject to customary regulatory clearance, is expected on June 1, 2000, and will be financed through an extension of the Company's current Senior Credit Facility. The transaction is expected to be accretive to earnings within the current year. CHS, with headquarters in Verona, New Jersey Verona is a township in Essex County, New Jersey, United States. As of the United States 2000 Census, the township population was 13,533, making it the 181st most populous municipality in New Jersey (out of 566 statewide). , is the leading provider of health services to county correctional and residential treatment facilities in New Jersey. Founded in 1989 by its principal shareholder and chief executive officer, Robert R. Detore, CHS has earned an excellent service reputation and achieved steady, careful growth. It presently has annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues of approximately $19 million generated by 19 contracts, providing services to 23 adult and juvenile detention and residential treatment facilities with a total average daily population of approximately 12,000 inmates. In 1999, CHS was recognized as one of New Jersey's Finest Private Companies by Business News New Jersey. "CHS represents a valuable franchise in the important privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned state of New Jersey," stated Michael Catalano, president and chief executive officer of America Service Group. "CHS has high-caliber management and clinical personnel to lead further development efforts in the region. The operations of CHS complement our own operations in New Jersey, where we also have three county contracts, and present the opportunity to leverage a significant, diversified revenue base." In commenting on the transaction, Robert R. Detore, principal shareholder and chief executive officer of Correctional Health Services, said, "We are excited about joining a national leader in our industry. We can now offer our clients new and expanded services as well as provide our dedicated employees with new benefits and opportunities for professional growth. We will continue to focus on servicing our clients in New Jersey with the same corporate personnel and facility level management staff." America Service Group Inc., based in Brentwood, Tennessee, is a leading provider of correctional healthcare services in the United States. Subsequent to the CHS transaction, America Service Group, through its subsidiaries, contracts with approximately 123 government agencies to provide a wide range of managed healthcare programs for approximately 165,000 patients. The Company employs over 4,600 medical, professional and administrative staff nationwide. This press release may contain "forward-looking" statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. As such, they involve risk and uncertainty that actual results may differ materially from those projected in the forward-looking statements. A discussion of the important factors and assumptions regarding the statements and risks involved is contained in the Company's filings with the Securities and Exchange Commission. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion