Hanger Orthopedic Group, Austin, Texas, announced that it has signed a $155 million definitive merger agreement to acquire Reno, Nevada-based Accelerated Care Plus (ACP), a provider of integrated clinical programs for sub-acute and long-term care rehabilitation providers. Hanger anticipates this transaction will be consummated before the end of 2010, subject to customary closing conditions, including regulatory approvals, as well as the successful completion of Hanger’s planned financing.
A new but related growth platform for Hanger, ACP has current contracts to serve more than 4,000 out of a total market of approximately 15,000 skilled nursing facilities (SNF) nationwide, including 22 of the 25 largest national providers.
ACP’s management team will remain intact, with its current Chief Executive Officer, John Beach, reporting to Hanger’s Executive Vice President and Chief Growth Officer, Vinit Asar. In addition, according to a Hanger press release, all of ACP’s workforce will be offered employment positions, including its Reno headquarters staff and its network of more than 150 licensed physical and occupational therapists that provide clinical education and program support for ACP’s client-partners.
“Speaking for myself and on behalf of the other senior leadership at ACP, we are confident that joining the Hanger family of companies will provide us with the resources and support we need to help improve quality of life for more patients and continue our mission of revolutionizing rehabilitation, Beach said.
Hanger President and CEO Thomas F. Kirk commented, “We are very pleased to announce this merger agreement, which joins two industry leaders in adjacent healthcare businesses that share complementary clinical cultures, technology, customers, and patient populations…. We are confident of ACP’s strategic and cultural fit with Hanger and of the potential we have together to drive future growth and shareholder value.”
For 2010, Hanger anticipates ACP, which is debt-free, will produce revenues of approximately $57 million and approximately $17 million of earnings before insurance, taxes, depreciation, and amortization (EBITDA).
Hanger hosted a conference to discuss the acquisition this morning. A replay will be available until Tuesday, October 26, 2010 by dialing 1.800.642.1687 and referencing conference ID # 19288899.
