Printer Friendly

PREMIER ANESTHESIA APPROVES IN PRINCIPLE ACQUISITION OF NATIONAL PAIN INSTITUTE

 PREMIER ANESTHESIA APPROVES IN PRINCIPLE
 ACQUISITION OF NATIONAL PAIN INSTITUTE
 ATLANTA, Aug. 20 /PRNewswire/ -- Premier Anesthesia, Inc. (NASDAQ: PRAN), the nation's leading multi-state provider of contract anesthesiology services, today announced that its board of directors approved in principle the acquisition of the stock of National Pain Institute, Inc., a private corporation affiliated with Premier that operates three outpatient medical/surgical centers specializing in pain management and the treatment of chronic and acute pain. The purchase price for the transaction, in which National Pain Institute would become a wholly owned subsidiary of Premier Anesthesia, consists of $4 million payable to the holders of the NPI Preferred Stock and an earnout of up to $11 million based on the future earnings of NPI.
 For the year ended Dec. 31, 1991, and the first six months of 1992, Premier reported net income of $902,000 on net revenues of $40.5 million and $907,000 on net revenues of $23.9 million, respectively. National Pain Institute during the same periods recorded net income of $1.5 million on net revenues of $16.8 and $753,000 on net revenues of $15.6 million. Management anticipates the acquisition to have an anti- dilutive impact on reported earnings per share. The consummation of the transaction is subject to certain conditions including fairness opinions, approvals by disinterested members of the board of directors and disinterested shareholders of Premier Anesthesia, execution of definitive agreements and due diligence. A committee of disinterested directors has been appointed to review the proposed transaction.
 Premier Anesthesia and NPI are involved in complimentary aspects of medical anesthesia and pain management. Premier has concentrated primarily on providing anesthesia services in surgical and obstetrical settings in hospitals and clinics, while NPI has specialized in post- operative and outpatient pain management.
 In a joint release, Richard D. Ballard, president and chief executive officer of Premier Anesthesia, and Richard W. LeGrand, president and chief executive officer of National Pain Institute, commented on the well-matched nature of the two companies and the growth synergies that they feel can be achieved through their combined operations. Ballard also said that the transaction would implement Premier Anesthesia's previously announced intent to expand through strategic acquisitions of entities in complementary or related fields. Specifically, Ballard noted that the proposed acquisition would enable Premier to attract new hospital clients desiring both contract anesthesia and pain management services, increase revenues at certain existing client hospitals through the addition of pain management services, attract and
accelerate practice acquisitions, and enhance gross margins. LeGrand noted that NPI has also been seeking to broaden its operations and to obtain necessary working capital while it diversifies its payor mix from predominantly litigated worker's compensation (historically 365-plus day accounts receivable) to private pay and managed care.
 In addition to approving in principle the proposed acquisition, Premier will loan up to $3 million to NPI on a subordinated secured basis, which will be due on the earlier of closing or March 31, 1993. NPI (and affiliated physician groups) currently owes approximately $4.2 million to Premier, which will be due at that same time.
 Premier Anesthesia and NPI were both founded by Richard L. Jackson, chairman of the board of Premier Anesthesia and National Pain Institute and several other privately held companies in the health care industry. Premier Anesthesia was organized in February 1988. NPI was founded by Jackson and Dr. Bruce M. Frome in May 1990. Jackson, Ballard, and HealthCare Ventures II, L.P., a venture capital firm, are substantial shareholders in both Premier Anesthesia and NPI.
 Premier Anesthesia, Inc. is headquartered in Atlanta, Ga. National Pain Institute, Inc. is headquartered in Marina del Rey, Calif.
 -0- 8/20/92
 /CONTACT: Richard Ballard of Premier Anesthesia, 404-458-4852 or Richard LeGrand of National Pain Institute, 310-305-7477 or Gary Strong or Nick Farina of Financial Relations Board, for Premier Anesthesia 312-266-7800/
 (PRAN) CO: Premier Anesthesia, Inc.; National Pain Institute, Inc. ST: Georgia IN: HEA SU: TNM


DC -- NY033 -- 1677 08/20/92 11:41 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 20, 1992
Words:665
Previous Article:TOPOX ANNOUNCES RESULTS FOR THE FIRST QUARTER ENDED JUNE 30, 1992
Next Article:WEYERHAEUSER STRENGTHENS CORE BUSINESSES WITH AGREEMENTS TO PURCHASE PROCTOR & GAMBLE PULP MILLS, SAWMILLS, TIMBERLANDS
Topics:


Related Articles
PREMIER HEALTHCARE CONTINUES GROWTH IN HEALTH SERVICES; EXPANSION THROUGH INVESTMENTS AND ACQUISITIONS
PREMIER ANESTHESIA DOWNSIZES NATIONAL PAIN INSTITUTE; WILL TAKE A $12 MILLION PRETAX RESTRUCTURING CHARGE; FOUNDER APPOINTED CEO
PREMIER ANESTHESIA SIGNS 44TH SERVICE CONTRACT AND SIGNS AGREEMENT IN PRINCIPLE TO ACQUIRE LAS VEGAS PAIN CENTER
PREMIER ANESTHESIA RESTRUCTURES OPERATIONS; INCREASES RESTRUCTURING EXPENSE ESTIMATE; ANNOUNCES MANAGEMENT CHANGES
PREMIER ANESTHESIA'S NPI SUBSIDIARY RENEWS LONG-TERM FINANCING FACILITY
PREMIER ANESTHESIA'S NPI SUBSIDIARY RENEWS LONG-TERM FINANCING FACILITY
PREMIER ANESTHESIA REPORTS FIRST QUARTER RESULTS; RETURNS TO PROFITABILITY
ALLEGIANT COMPLETES THE SALE OF ITS ANESTHESIA DIVISION TO ANESTHESIA SOLUTIONS, INC.
EquiMed Approves Acquisition of Anesthesia Solutions, Inc.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters