Sun healthcare sells rehabilitation business to AEGIS for $34 million.In an effort to continue its financial restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , Irvine Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.-based Sun Healthcare Group Inc. has agreed to sell its rehabilitation rehabilitation: see physical therapy. business to Fort Smith, Ark.-headquartered AEGIS Therapies Inc. for $34 million, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. officials with both companies. The transaction, involving Sun Healthcare's SunDance Sundance is a popular ski resort located near Provo, Utah. It was bought by the actor Robert Redford in 1968. Redford's wife was from Utah and they had built a home in the area five years earlier. Rehabilitation Corp. and SunDance Rehabilitation Agency Inc., must still be approved by the board of directors of Beverly Beverly, city (1990 pop. 38,195), Essex co., NE Mass., on Massachusetts Bay; inc. as a city 1894. Its chief manufactures are electronic and scientific equipment, consumer goods, and chemicals. Enterprises Inc., AEGIS' parent firm. The deal was expected to close at the end of January January: see month. , according to Sun Healthcare Chairman and Chief Executive Officer Richard K. Matros. Matros said his company is "pleased to have reached this agreement to sell our rehab business to a quality operator like AEGIS." AEGIS, a division of Beverly Enterprises Inc., is the nation's leading contract provider of rehabilitative re·ha·bil·i·tate tr.v. re·ha·bil·i·tat·ed, re·ha·bil·i·tat·ing, re·ha·bil·i·tates 1. To restore to good health or useful life, as through therapy and education. 2. therapy, serving more than 950 nursing homes in 36 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . The company has grown from start-up Start-up The earliest stage of a new business venture. status in 2000 to more than $90 million in revenue at the end of 2003, according to AEGIS Chairman, President and Chief Executive Officer William R. Floyd. Floyd called the SunDance operations "well-regarded" and said they should accelerate his company's growth even more. "[This is] very much in alignment with our strategic plan to significantly grow the service side of our business," Floyd said. SunDance Rehabilitation Corp., one of the nation's leading providers of rehabilitation services since 1991, specializes in physical and occupational therapy and speech/language pathology pathology, study of the cause of disease and the modifications in cellular function and changes in cellular structure produced in any cell, organ, or part of the body by disease. . AEGIS said it does not plan to make any changes to the SunDance operations at the patient or facility levels. The company plans to retain existing therapists during and after the transition. AEGIS also plans to offer all SunDance area managers a position within the company; AEGIS also planned to decide how to handle SunDance senior-level staff before the transaction closed. The sale should also help Sun Healthcare regain a strong financial footing, according to Matros. Since the company's emergence from Chapter 11 in February 2002, Sun Healthcare has gradually restructured itself, including selling its software products subsidiary, Shared Healthcare Systems, to top competitor Accu-med Services Inc. in December 2003.
Market Leaders
The top-performing stocks among the long term care industry's publicly
traded companies during the past month:
New York Stock Exchange
Symbol Closing Closing Net Price
1/08/04 12/9/03 Change
1. Capital Senior Living Corp. CSU $6.79 $4.44 +$2.35
2. Rehabcare Group RHB $23.10 $15.30 +$7.80
3. Forest Laboratories Inc. FRX $68.03 $49.60 +$18.43
4. Beverly Enterprises Inc. BEV $8.45 $6.21 +$2.24
5. Province Healthcare Co. PRV $16.82 $12.55 +$4.27
Percentage
Change
1. Capital Senior Living Corp. +52.9%
2. Rehabcare Group +51.0%
3. Forest Laboratories Inc. +37.2%
4. Beverly Enterprises Inc. +36.1%
5. Province Healthcare Co. +34.0%
Nasdaq Exchange
Symbol Closing Closing Net Price
1/08/04 12/9/03 Change
1. Amedisys Inc. AMED $15.26 $11.25 +$4.01
2. Lifepoint Hospitals Inc. LPNT $33.46 $25.40 +$8.06
3. Kindred Healthcare Inc. KIND $53.93 $41.91 +$12.02
4. Span America Medical Systems SPAN $12.50 $9.76 +$2.74
5. Axonyx Inc. AXYX $5.51 $4.49 +$1.02
Percentage
Change
1. Amedisys Inc. +3.56%
2. Lifepoint Hospitals Inc. +3.17%
3. Kindred Healthcare Inc. +28.7%
4. Span America Medical Systems +28.1%
5. Axonyx Inc. +22.7%
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