BioScrip and Option Care Enterprises, two of the largest independent providers of home infusion therapy services, have entered into a definitive merger agreement, the companies announced on March 15.
Under the terms of the agreement, BioScrip will issue new shares to Option Care, which is owned by investment funds affiliated with Madison Dearborn Partners and Walgreens Boots Alliance, in an all-stock transaction. Upon completion of the transaction, MDP and WBA will own about 80% of the combined company, with BioScrip shareholders holding the remainder.
Option Care CEO John Rademacher and CFO Mike Shapiro will lead the combined company. BioScrip President and CEO Daniel Greenleaf will become a special adviser to the company’s board of directors.
“This is a compelling and complementary fit of two leading players in the U.S. infusion market,” Greenleaf said. “Together, we will be able to provide a diverse set of life-improving and cost-effective services to more patients across the United States. Our expanded reach and broader array of offerings provide a key competitive advantage at a time when the demand for home and alternate site infusion services continues to grow.”
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Expected benefits of the transaction include improved, cost-effective patient care; enhanced scale and therapy offerings; a “powerful growth engine in an attractive industry”; and compelling financial benefits, the companies say.
The combined company’s common stock will continue to be listed on the Nasdaq Global Market. The transaction is expected to be completed in the second half of 2019.
Date: March 18, 2019
Source: HME News
