Health care company BioScrip (NASDAQ:BIOS) announced today that its acquisition of HomeChoice Partners officially closed on Feb. 1. The $70 million all-cash deal is between BioScrip and DaVita HealthCare Partners (NYSE:DVA), the majority owner of HomeChoice.
HomeChoice is a provider of alternate-site infusion pharmacy services, with 15,000 patients and 14 locations in the east and southeast United States.
"We expect to immediately begin to integrate HomeChoice into our Infusion Services segment to take advantage of increased purchasing power, operating leverage and market synergies," said BioScrip President and CEO Rick Smith in a statement today. "HomeChoice is an important part of our ongoing strategy to build our infusion business through strategic and opportunistic acquisitions, which meet our financial criteria and enable us to expand our national footprint."
BioScrip first announced its intention to acquire HomeChoice on Dec. 12, 2012. HomeChoice is expected to generate approximately $70 million in annual revenue, with EBITDA margins between 12% and 14%. In 2011, Bioscrip pulled in $312 million in sales with a 2.75% EBITDA margin TTM.
Bioscrip estimates it will take up to one year for HomeChoice's business to be fully integrated into its own.