Interwest Home Medical Agrees To Be Acquired By Praxair
Interwest Home Medical, Inc. (Nasdaq: IWHM) and Praxair Distribution, Inc. today announced the signing of a definitive agreement whereby Interwest Home Medical would be acquired by Praxair Distribution. Praxair Distribution is a wholly owned subsidiary of Praxair, Inc. (NYSE:PX).
Under the terms of the agreement, Praxair will pay approximately $42 million for the equity of Interwest Home Medical, plus the assumption of debt. The boards of directors of each company have approved the definitive agreement. The transaction is subject to regulatory approvals and approval by the shareholders of Interwest Home Medical, but is expected to close in the second quarter of calendar 2001.
During the fiscal year ended September 30, 2000, Interwest Home Medical generated revenues of $43.3 million. Praxair's homecare business will combine its operations with Interwest Home Medical's operations in areas where both companies currently provide services. The current officers and managers of Interwest Home Medical are expected to continue with Praxair.
"When added to our existing operations, Interwest Home Medical's services will substantially expand Praxair's ability to serve home healthcare patients in the Rocky Mountain region with a comprehensive portfolio of products, services and equipment," said Sally Savoia, vice president, Healthcare, for Praxair.
James E. Robinson, Interwest Home Medical's president and CEO, commented, "We are pleased about Praxair's recognition of value that we have produced over the past few years and are excited about working within Praxair to develop their growing home respiratory and home medical equipment business in the United States."
Interwest Home Medical's services are primarily the rental and sales of home oxygen and respiratory equipment and other home medical equipment. Interwest Home Medical has expanded to 25 branch locations in Utah, Arizona, Idaho, Nevada, Colorado, Alaska and California and employs over 400. At present, Interwest Home Medical has preferred provider agreements with more than 50 different health insurance companies to provide home medical services to their covered beneficiaries. In addition, Interwest Home Medical maintains a sales force of over 40 persons who call on hospitals, physicians, therapists, discharge planners, case managers and other health care professionals. The company was the first home medical equipment (HME) services company west of the Mississippi River and the third in the nation to be accredited (since 1988) by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO). Interwest Home Medical Inc. (CUSIP# 46114P 20 9) maintains corporate offices located at 235 East 6100 South in Salt Lake City, Utah. The Company's common stock is traded on the NASDAQ Small-Cap Market under the symbol IWHM.
The healthcare market accounts for about 8% of Praxair sales worldwide. Praxair provides hospitals with one-stop shopping for medical gases, equipment and services and the home care market with respiratory products and services.
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