TORONTO, May 9, 2014 /CNW/ - Centric Health Corporation ("Centric Health" or "the Company") (TSX: CHH), today announced that it has completed the previously announced sale of its Home Care Business, Community Advantage Rehabilitation, Inc. ("CAR") and the Seniors Wellness operations, Active Health Services Ltd. ("Active Health"), to Lifespan Health and Wellness Limited (the "Lifespan" or the "Purchaser") for aggregate proceeds of $14.5 million, subject to certain adjustments.
"We believe the sale of the Home Care and Seniors Wellness operations fully resolves the perceived conflict of interest concerns of Ontario's Ministry of Health and Long Term Care," said David Cutler, President and Chief Executive Officer, Centric Health Corporation. "With the resolution, we expect Assisted Device Program referrals to our Retail and Home Medical Equipment business, which were adversely impacted by the perceived conflict, to return to historical levels."
The purchase price for each transaction was satisfied by the issuance of an eight-year secured promissory note bearing interest at 7 percent (subject to adjustment), payable monthly. Centric Health will provide transitional services to the Purchaser on an interim basis, in support of each business, in order to help effect a seamless transition with minimal disruption in services to customers and patients.
The Home Care business engages occupational therapists, physiotherapists, registered dieticians and social workers to perform home care services in communities, while the Seniors Wellness operations consist of a variety of health and wellness services including physiotherapy, occupational therapy and massage therapy to seniors living in long-term care and retirement homes and in the community.
About Lifespan Health and Wellness
Lifespan Health and Wellness' Founder, Raymond Stone, is a successful healthcare entrepreneur and consultant with 28 years of industry experience. Previously, Mr. Stone served as the President & Chief Executive Officer of Futuremed, a national distributor of consumable nursing home supplies and specialized furniture and equipment to the long-term care facilities sector he founded in 1985. Prior to founding Futuremed, Raymond spent eight years in various accounting and management positions in the financial industry. In 2011, he oversaw the acquisition of Futuremed by Cardinal Health, a global leader in the health care industry. A passionate philanthropist, Raymond sits on various charitable boards, including the Friends of Simon Wiesenthal Center for Holocaust Studies and Big Life, a charitable foundation committed to protecting and sustaining East Africa's wild lands and endangered elephant population.
About Centric Health
Centric Health's vision is to be Canada's premier healthcare company, providing innovative solutions centered on patients and healthcare professionals. As a diversified healthcare company with investments in several niche service areas, Centric Health currently has operations in medical assessments, disability and rehabilitation management, physiotherapy and surgical centres, homecare, specialty pharmacy and wellness and prevention. With knowledge and experience of healthcare delivery in international markets and extensive and trusted relationships with payers, physicians, and government agencies, Centric Health is pursuing expansion opportunities into other healthcare sectors to create value for all stakeholders with an unwavering commitment to the highest quality of care. Centric Health is listed on the TSX under the symbol CHH. For further information, please visit www.centrichealth.ca.
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, information relating to the sale transactions in respect of CAR and Active Health, statements regarding business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Centric Health and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits Centric Health will derive there-from.
SOURCE: Centric Health Corporation
For further information:
Chief Financial Officer
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