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GRANCARE EXPANDS PHARMACY OPERATIONS

GRANCARE EXPANDS PHARMACY OPERATIONS
 CULVER CITY, Calif., Oct. 1 /PRNewswire/ -- GranCare Inc. (NASDAQ: GRNC) announced today the continued expansion of its pharmacy operations with the completion of the acquisition of Granada Convalescent Pharmacy Inc. (ConvaCare), which serves more than 130 long-term health care facilities in California through its pharmacy, ancillary and wound care divisions.
 The acquisition of ConvaCare, with net revenues of approximately $10 million, increases the number of long-term beds serviced by GranCare's pharmacies by approximately 4,200. In addition to the routine prescription business, the new pharmacy also provides ancillary services such as IV therapies, TPN, pain management, enteral, urological, diabetic services and a comprehensive wound care management service which all provide higher profit margins to the company.
 "The wound care program represents a new market for GCI Pharmacies and signals our entry into durable medical equipment with the low air loss beds used in our wound management program," stated Kerry Nielson, president of GCI Pharmacies Inc.
 "We expect the introduction of this new wound care program into our existing health care facilities will incrementally increase our revenues and more importantly our profitability," added Gene Burleson, president and chief executive officer.
 The previously announced acquisition amounted to approximately $4 million in cash and notes for the stock of Granada Convalescent Pharmacy and an undisclosed amount of additional compensation for employment and non-compete agreements.
 GranCare now operates four pharmacies, (due to the consolidation of two pharmacies into one pharmacy operation in Southern California) located in California, Wisconsin and Colorado. These supplement the company's core business, operating 68 long-term health care facilities located in California, Wisconsin, Colorado, Arizona, Illinois and South Dakota.
 The company reported revenues of $175 million and net income of $3.8 million for the year ended Dec. 31, 1991, and revenues of $125.7 million and net income of $3.8 million for the six months ended June 30, 1992.
 -0- 10/01/92
 CONTACT: Kerry Nielson, president, or Catherine Greany of GCI Pharmacies, 310-645-1555; or Craig Parsons or Kim Feazle of Pondel Parsons & Wilkinson, 310-207-9300, for GranCare
 (GRNC) CO: GRANCARE INC.; GCI PHARMACIES INC. IN: HEA SU: TNM ST: CA -- LA015 -- X946 10/01/92
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Publication:PR Newswire
Date:Oct 1, 1992
Words:360
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