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HOMEDCO ACQUIRES GLASROCK HOME HEALTH CARE

 HOMEDCO ACQUIRES GLASROCK HOME HEALTH CARE
 FOUNTAIN VALLEY, Calif., Aug. 7 /PRNewswire/ -- Homedco Group


Inc. (NASDAQ: HOME) has completed the transaction to acquire the assets of Glasrock Home Health Care Inc., headquartered in Smyrna, Ga., formerly a subsidiary of BOC Health Care Inc. Glasrock was one of the largest providers of home health care services in the respiratory therapy market, previously operating 132 locations. Homedco, after consolidations, will operate more than 200 locations nationwide. The company offers integrated home health services, including home respiratory therapy, home infusion therapy and home medical equipment. The company believes that, on a combined basis, its annual revenues for fiscal 1993 will exceed $420 million.
 With the acquisition completed, Homedco's service area now will extend into the Southeastern United States, with new locations in North Carolina, South Carolina, Georgia, Alabama, Florida and Louisiana. More comprehensive coverage also will be achieved in the Midwest, with the addition of new locations in Michigan, Minnesota and Illinois.
 In addition to the increase in respiratory therapy market share, the acquisition offers Homedco new markets into which to expand its growing home infusion therapy services. "Our network of 24 pharmacies will allow us to immediately introduce our home infusion therapy services in areas such as southern Illinois, western Kansas, and -- longer term -- into the Southeastern U.S.," noted Jeremy M. Jones, president and chief executive officer of Homedco. Also included in the acquisition was the assumption of more than 100 managed-care contractual agreements.
 "For any company to successfully complete an undertaking of this dimension requires the dedication and commitment of all employees and management. We are also fortunate to have brought into our ranks an excellent group of new employees in the field management, sales and service organization," remarked Jones. Leading the newly established Homedco southeast region will be former Glasrock Regional Vice President, Tom Robbins.
 The total consideration for the transaction was approximately $72 million and was paid through a combination of cash and assumption of liabilities. The transaction was financed through a $133 million credit facility provided by Banque Paribas. The financing was used to fund the acquisition, to refinance all outstanding balances under Homedco's current bank credit facility, and for other general corporate purposes.
 Homedco does not expect any dilution to its fiscal 1993 net earnings and anticipates that the acquisition will materially contribute to earnings beginning in fiscal 1994.
 Homedco is one of the nation's leading providers of home health care services, offering home respiratory therapy, home infusion therapy and home medical equipment. It is traded on the NASDAQ over the counter national market system with the symbol HOME.
 -0- 8/7/92
 /CONTACT: Jeremy M. Jones, president and CEO, 714-755-5650, ext. 236, Lawrence H. Smallen, CFO, 714-755-5650, ext. 205, or Karen M. Thomsen, 714-755-5650 ext. 242 all of Homedco/
 (HOME) CO: Homedco Group Inc. ST: California IN: HEA SU: TNM


BP-EH -- LA009 -- 8060 08/07/92 13:54 EDT
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Publication:PR Newswire
Date:Aug 7, 1992
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