Dear subscribers,
There have been much talk about and around Hanger recently. Most must have
read a news note about Hanger-NovaCare dispute in July Bio-Mechanics,
if you havn’t, here it is:
Arbitrator settles terms of NovaCare sale
An independent arbitrator ruled that NAHC (formerly NovaCare) of King of
Prussia, PA, must pay $25.1 million to Hanger Orthopedic Group of Bethesda,
MD, resolving a dispute over the value of NovaCare O&P at the time of its sale
to Hanger.
The original purchase agreement called for a decrease in the purchase price
paid by Hanger for NovaCare if NovaCare O&P’s working capital fell below a
certain amount by the end of June 1999. Hanger and NovaCare disagreed on the
amount by ‘Which the
purchase price should be decreased. NAHC will pay Hanger $10.1 million
directly and $15 million from an escrow account established at the time of the
sale.
