THE ADMAR GROUP INC. TO ACQUIRE BENEFIT PLAN ADMINISTRATORS AND HOFGARD & CO.
THE ADMAR GROUP INC. TO ACQUIRE BENEFIT PLAN ADMINISTRATORS AND HOFGARD & CO. SANTA ANA, Calif., Sept. 23 /PRNewswire/ -- The Admar Group Inc. (NASDAQ: ADMR) today announced that it has signed an agreement in principle to acquire Benefit Plan Administrators ("BPA") and Hofgard & Co. ("Hofgard") for cash and notes of $1.6 million. A definitive agreement is expected to be signed by Oct. 1, 1992. BPA & Hofgrard of Boulder, Colo., a third-party administrator with annualized revenues exceeding $1.5 million, administers and provides healthcare benefit management services to employers covering approximately 30,000 individuals. The current staff and facilities will continue to provide regional services. "BPA's location in the Rocky Mountain market provides Admar with excellent presence, ability for growth and expansion of Admar's existing services in this geographic area. It will also enable Admar to couple its managed care products to better serve BPA and Hofgard's clients," said Richard H. Toral, chairman and chief executive officer of Admar. "This addition to Admar plus the recent acquisition of Image Financial & Insurance Services Inc., of Laguna Niguel, Calif., should add over $2.25 million of additional annual revenue to Admar. William G. Hofgard, president and chief executive officer of BPA & Hofgard, commented, "With Admar's growing national presence, our combined organization will be ideally positioned to continue delivering the administrative services and cost management products and systems so much in demand by the employers we serve in this area. I look forward to adding our expertise to the Admar management team in the further development of this dynamic business." The Admar Group Inc. develops, markets and administers managed health care services which facilitate the delivery and manage the cost of providing health care through contracted insurance carriers and self-insured employer groups. Admar's services are marketed as an adjunct to employee health care benefit plans. Programs include Preferred Provider Organizations and Exclusive Provider Organizations; the HealthWatch Medical Review System, designed to ensure appropriate use of hospitalization for medical/surgical, substance abuse, mental health, catastrophic illness and injuries; HealthWatch Advantage, a hospital and surgical negotiation program; and Managed Benefits Division, which provides management of employee benefits. -0- 9/23/92 /CONTACT: William G. Hofgard, president and CEO of Benefit Plan Administrators, 303-442-1000; or Stephen Goodell, president-managed benefits division of Admar, 714-953-9600/ (ADMR) CO: The Admar Group Inc.; Benefit Plan Administrators; Hofgard & Co. ST: California, Colorado IN: HEA SU: TNM
BP-AL -- LA001 -- 2492 09/23/92 09:03 EDT
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|Date:||Sep 23, 1992|
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