Pediatric Services OF America (NASDAQ:PSAI)
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Pediatric Services of America, Inc., d/b/a PSA
HealthCare (Nasdaq:PSAI) today announced that it has entered into a
definitive agreement to divest substantially all of the assets of its
Respiratory Therapy Equipment and Services reportable segment to
Lincare, Inc. Additionally, certain liabilities related to this
business were assumed by Lincare. The purchase price is approximately
$35.2 million in cash of which $31.2 million is due upon closing. The
closing of the transaction is subject to customary closing conditions
including finalization of due diligence.
"With this agreement, we intend to focus solely on growing our
core competency, pediatric nursing," said Daniel J. Kohl, President
and CEO of PSA. "Considering the current reimbursement climate related
to our respiratory therapy equipment and services segment, we believe
that the valuation given to this business by Lincare is superior to
the valuation we could achieve independently. We remain devoted to
delivering the highest quality patient care for our PDN and PPEC
patients, and will continue to concentrate on expanding our Pediatric
PDN and PPEC segments via start-ups and acquisitions."
PSA intends to discuss further details related to this transaction
on an investor conference call scheduled for Monday August 28, 2006 at
11:00 a.m. ET. Dial-in instructions follow:
-0-
*T
Event: Pediatric Services of America, Inc. Investor Call
Date and Time: Monday August 28, 2006
Instructions: The dial - in number for all participants is
800-374-1702.
To join the Q&A session, press * followed by 1.
*T
If you are unable to attend the live broadcast, replays of the
conference call will be available for 14 days (until September 11,
2006) by dialing 800-642-1867. To connect with the replay of the call,
please refer to Pediatric Services of America, Inc. call Passcode:
2878473#.
PSA currently provides comprehensive pediatric home health care
services through a network of over 100 branch offices in 20 states,
including satellite offices and branch office start-ups. Through these
offices, PSA provides a combination of services, including pediatric
private duty nursing (PDN), pediatric day treatment centers (PPECs)
and respiratory therapy and equipment services (RTES). Additional
information on PSA may be found on the Company's website at
http://www.psahealthcare.com.
NOTE: Forward looking statements made in this release involve a
number of risks and uncertainties, certain of which are beyond our
control, including, but not limited to changes in government
regulation and health care reforms, ability to execute the Company's
strategic programs, ability to improve accounts receivable
collections, changing economic and market conditions and other risk
factors detailed in the Company's Securities and Exchange Commission
filings. Any forward looking statement speaks only as of the date on
which such statement is made, and we undertake no obligation to update
any forward looking statement or statements to reflect events or
circumstances after the date on which such statement is made or to
reflect the occurrence of an unanticipated event.