America Service Group Purchases Stadtlanders Corrections Division From Bergen Brunswig Corporation; Gives Company New Market Advantages; Accretive in 2001.Business Editors/Health & Medical Writers NASHVILLE, Tenn.--(BW HealthWire)--Sept. 20, 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 ) announced today that it had acquired Stadtlanders Corrections Division (Stadtlanders) from Bergen Brunswig Corporation (NYSE NYSE See: New York Stock Exchange :BBC BBC in full British Broadcasting Corp. Publicly financed broadcasting system in Britain. A private company at its founding in 1922, it was replaced by a public corporation under royal charter in 1927. ). Stadtlanders is the country's largest correctional pharmacy company. It generates approximately $80 million in annual revenues, about half of which represents purchases by America Service Group. The acquisition, which is expected to be accretive to earnings in 2001, is structured as an asset purchase and financed under the Company's existing senior credit facility. Consideration for the transaction was $6.25 million plus purchase of inventory. Michael Catalano, chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of America Service Group, said, "The transaction is a natural expansion of America Service Group's correctional activities. It presents an opportunity to offer unbundled pharmacy services and medical supplies and enhances our ability to control pharmacy costs. In addition, the combination with America Service Group strengthens Stadtlanders' ability to expand its pharmacy and medical surgical supplies business to additional customers. We are pleased with the potential of this transaction to add value for our clients and shareholders." Stadtlanders will be operated as a subsidiary of America Service Group under the name Secure Pharmacy Plus, Inc. Dr. Trey Hartman, executive vice president of Stadtlanders, will become the president and chief executive officer of Secure Pharmacy Plus, Inc. and executive vice president of America Service Group. "We welcome this opportunity to join forces with America Service Group," Hartman said. "Their financial resources and marketing strength, combined with our leading market share, will enhance our opportunities to develop this business to its fullest potential. Clearly, the benefits to America Service Group include an expanded product offering and a complementary growth vehicle." Secure Pharmacy Plus, Inc. is based in Franklin, Tennessee Franklin is the county seat of Williamson County, Tennessee, USA. The population was 41,842 at the 2000 census. The 2007 Census Bureau Estimate places the population at 55,870. . Its primary business is selling pharmacy products to correctional institutions, and it ranks number one in market share in the $600 million correctional pharmacy sector. The Company is expanding its service offering to include medical surgical supplies and over-the-counter commissary COMMISSARY. An officer whose principal duties are to supply the army with provisions. 2. The Act of April 14, 1818, s. 6, requires that the president, by and with the consent of the senate, shall appoint a commissary general with the rank, pay, and emoluments products. America Service Group Inc., based in Brentwood, Tennessee, is a leading provider of correctional healthcare services in the United States. America Service Group Inc., through its subsidiaries, provides a wide range of managed healthcare and pharmacy programs for approximately 325,000 inmates. The Company employs over 5,100 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. For additional information about the Company, visit America Service Group's web site: http://www.asgr.com |
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