Continental Home Healthcare Acquires Carepoint Health Services Inc.Business Editors GLENDALE, Calif.--(BUSINESS WIRE)--Jan. 4, 2001 Continental Home Healthcare Ltd. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : CHT CHT Chart CHT Center for Health Transformation (Washington, DC) CHT Chittagong Hill Tracts (Bangladesh region) CHT Certified Hypnotherapist CHT Cylinder Head Temperature CHT Certified Hand Therapist .) announced today that it has successfully completed the acquisition of all the assets of CarePoint Health Services health services Managed care The benefits covered under a health contract Inc. of Van Nuys, California. CarePoint is a home medical equipment business with assets of US$3.3 million and annual revenues of US$3.4 million. The total cost of the acquisition is US$2.3 million. The terms of payment include (i) a promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. for US$400,000 bearing annual interest of 10%, with interest only payable for six months and the entire principal due six months from closing, (ii) a second promissory note for US$400,000 bearing annual interest of 8% with interest only payable for 24 months and the principal paid in January 2003, (iii) the assumption of US$1.5 million in accounts payable and equipment leases with terms ranging from six months to four years. The transaction terms accommodate the seller who is moving to another sector of the health care industry. CarePoint Health Services is one of southern California's leading home medical equipment companies and Continental had considered them one it's strongest competitors. They enjoy a large patient base resulting from their preferred provider contract with the U.C.L.A. Medical Center, one of Los Angeles' largest medical facilities. CarePoint derives a significant percentage of its revenues from the high margin rental and respiratory product revenue sectors, areas that match perfectly with Continental's preferred acquisition criteria. Robert Thornton For the politician, see . For the physicist, see . Robert "Choc" Thornton (born July 14, 1978 [1]) is an English National Hunt jockey currently employed as stable jockey to Alan King. , President and C.E.O. said that with CarePoint's substantial operational base and the minimal up front costs to acquire the company, this acquisition will be immediately accretive to earnings per share. The economies of scale from an administrative standpoint as well as the anticipated short integration period will also benefit the Company. Continental is enthusiastic about assuming CarePoint's skilled employee base of 30 to ensure a smooth transition period and to provide continuity and superior customer service for the patients, he added. Continental has experienced tremendous growth during the last three years. The Company is currently renovating new space to accommodate its rapid internal growth and the integration of the CarePoint employees and is actively seeking additional acquisition opportunities to fuel its continued success. Continental Home Healthcare Ltd. acquires, consolidates, and manages healthcare equipment retailers that provide equipment such as hospital beds, custom power and manual wheelchairs, scooters, bathroom safety products, ambulatory aids, respiratory products and aids for daily living sold to individuals and healthcare institutions. Branches are located in Glendale and Indian Wells, California Indian Wells is a city in Riverside County, California, in the Coachella Valley (Palm Springs area), in between Palm Desert and La Quinta. As of the 2000 census, the city population was 3,816. It has the highest proportion of millionaires of any city in the United States. ; Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Nevada; Penticton and Vancouver, British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography . The Company's shares trade on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol "CHT". If you wish to receive company press releases via email, please advise Natasha Blackburn at natasha@humekieran.on.ca. |
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