Chemed Completes Sale of Patient Care Inc.Business Editors CINCINNATI--(BUSINESS WIRE)--Oct. 11, 2002 Chemed Corporation (NYSE NYSE See: New York Stock Exchange :CHE)(OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CHEQP) today announced the completion of the previously announced sale of its wholly owned Patient Care Inc. subsidiary to an investor group that includes Schroder Ventures Life Sciences Group, Oak Investment Partners, Prospect Partners, and Salix Ventures. Chemed will receive $57.5 million in cash, a $12.5 million note receivable note receivable A debt due from borrowers and evidenced by a written promise of payment. Note receivable, an entry on the asset side of many corporate balance sheets, indicates the dollar amount of loans due to be repaid by borrowers. , and warrants in the purchasing company. Chemed expects to record a capital gain of less than $1 million in the 2002 fourth quarter as a result of the sale. Commenting on the sale, Chemed President and Chief Executive Officer Kevin J. McNamara said, "With the sale of Patient Care, Chemed's management will be able to focus solely on building its residential and commercial maintenance and repair businesses, namely our flagship Roto-Rooter subsidiary and Service America. In particular, we expect to use the proceeds from the sale to fund franchise acquisitions for Roto-Rooter." Chemed Corporation (www.chemed.com), headquartered in Cincinnati, is a New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Stock Exchange-listed corporation operating in the residential and commercial repair-and-maintenance-service industry through two wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. . Roto-Rooter Inc. is North America's largest provider of plumbing plumbing, piping systems inside buildings for water supply and sewage. The Romans had a highly developed plumbing system; water was brought to Rome by aqueducts and distributed to homes in lead pipes—hence the name plumbing from the Latin word plumbum and drain cleaning services. Service America Systems Inc. provides major-appliance and heating/air-conditioning repair, maintenance, and replacement services. Statements in this press release or in other Chemed communications may relate to future events or Chemed's future performance. Such statements are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and are based on present information Chemed has related to its existing business circumstances. Investors are cautioned that such forward-looking statements are subject to inherent risk that actual results may differ materially from such forward-looking statements. Further, investors are cautioned that Chemed does not assume any obligation to update forward-looking statements based on unanticipated events or changed expectations. |
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