GRANCARE EXECUTES ACQUISITION AGREEMENT
GRANCARE EXECUTES ACQUISITION AGREEMENT CULVER CITY, Calif., Sept. 8 /PRNewswire/ -- GranCare Inc.
(NASDAQ: GRNC) announced today that it entered into a binding agreement to acquire all of the capital stock of Granada Convalesant Pharmacy Inc. (Convacare). Convacare and its subsidiaries serve more than 130 long-term health care facilities in California, with net revenues of approximately $10 million. The current management of Convacare will continue to oversee the operations of Convacare and its subsidiaries. The purchase price for the acquisition will be a combination of cash and notes, and it is anticipated this transaction will be completed by Sept. 30, 1992.
The acquisition will provide GranCare access to 4,200 beds for pharmacy services as well as additional ancillary services including medication, IV, enteral, urological diabetic and wound care management and other services. The transaction will bring the total number of GranCare pharmacies to five, located in California, Wisconsin and Colorado. "This transaction is consistent with our strategy of expanding GranCare's pharmacy operations while realizing additional revenues from a broader range of services," said Gene E. Burleson, president and chief executive officer. "Our pharmacy operations are expanding as planned with the addition of such a significant pharmacy in the California market," added Kerry Nielson, president of GCI Pharmacies Inc. GranCare presently operates 68 long-term health care facilities located in California, Wisconsin, Colorado, Arizona, Illinois and South Dakota as well as four institutional pharmacies. 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- 9/8/92 /CONTACT: Kerry Nielson of GCI Pharmacies, 310-645-1555; or Craig A. Parsons or Kim P. Feazle of Pondel, Parsons & Wilkinson, 310-207-9300, both for GranCare/ (GRNC) CO: GranCare Inc.; Granada Convalescent Pharmacy Inc. ST: California IN: HEA SU: TNM
BP-LS -- LA017 -- 6837 09/08/92 09:03 EDT
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|Date:||Sep 8, 1992|
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