A Medical Device Daily
Arcadia Resources (Southfield, Michigan), a provider of home care and staffing services, mail order pharmacy and durable medical equipment (DME), reported that it has purchased all of the assets of Health-Link, a DME supplier focused on respiratory disease management, with operations in northwest Indiana and metropolitan Chicago. Terms of the purchase were not disclosed.
With integration of the acquisition, Arcadia said Health-Link will operate under the name Arcadia H.O.M.E. (for home oxygen medical equipment).
Abraham Sabbagh, managing member of Health-Link, said that Arcadia’s “expanded scope of services and strong management team will greatly benefit our customers.”
Larry Kuhnert, president of Arcadia, said that Sabbagh “brings a cross-section of marketing expertise on both the home care services and DME side of our business. . . . This acquisition supports our overall strategy to expand sales nationwide across multiple revenue streams, including mail order, home healthcare products and services.”
Arcadia Resources retained UBS Investment Bank to act as its financial advisor.
Arcadia reported that since mid-2004 it has acquired several home healthcare, DME and staffing businesses in Alabama, Colorado, Florida, Georgia, Illinois, Indiana, Massachusetts and North Carolina.
In other dealmaking activity:
• Radiation Therapy Services (Fort Myers, Florida), an operator of radiation therapy oncology centers, reported acquiring four radiation treatment centers from Dolphin Medical (Hawthorne, California) for $16.1 million.
The treatment centers are located in the Scottsdale, Arizona; Holyoke, Massachusetts; and Belcamp and Greenbelt, Maryland, areas. The centers treat about 100 patients daily, producing total annual revenues of about $11 million.
Radiation Therapy said the acquisitions in the Scottsdale and Holyoke treatment centers mark its entrance into the Arizona and Massachusetts markets. The acquisition of the Belcamp and Greenbelt centers augment existing centers in its western Maryland regional network.
Dr. Daniel Dosoretz, president and CEO of Radiation Therapy, said that the acquisitions are “consistent with our strategy of entering new markets that meet our established criteria and continuing to build on our existing regional networks. We are particularly pleased with the acquisition of the Scottsdale center, as it is located in a market with favorable demographics.”
Radiation Therapy Services operates centers primarily under the name 21st Century Oncology. Its 65 treatment centers are clustered into 21 regional networks in 13 states:
• Canglobe International (Edmonton, Alberta) reported completing its purchase of the Beiseker medical waste treatment facilities in Beiseker, Alberta. The facility will be owned by Canglobe’s subsidiary, Beiseker Envirotech of Alberta.
Canglobe said the acquisition is the first step in obtaining other “environmentally friendly technologies which will form the foundation” for the company to become a “substantial player” in the multibillion-dollar medical waste treatment industry.
Financing for the acquisition is provided by a mortgage on the facility of about C$1.4 million and by vendor take-back financing of C$600,000. In addition, 2 million shares of restricted stock were issued, for a total purchase price of $2.6 million for the facility and other assets.
Canglobe said it has begun a “$1.5 million upgrading” of the facility to triple production capacity. The company estimates that the additional capacity will be on-line within 60 days.