Thursday, May 11, 2006
© Copyright 2014
Gwinnett Daily Post
NORCROSS - Pediatric Services of America, a home health care company for sick infants and children, said it's expanding its nursing business in greater Chicago.
The Norcross company announced Wednesday it has agreed to acquire Melmedica Childrens Healthcare Inc.'s Illinois nursing branches in Schaumberg, Oak Lawn, Bloomington, Collinsville and Country Club Hills, along with another Melmedica business in Indianapolis.
The $1.6 million cash deal enables Pediatric Services to increase its market share in the Chicago area, where it had a nursing branch, respiratory therapy equipment office and pharmacy in Downer's Grove.
"We continue to see a number of opportunities available in attractive markets and remain focused on executing our acquisition strategy within the private duty nursing segment," Pediatric Services of America CEO Daniel Kohl said.
Melmedica, whose 2005 revenue was $10.8 million, keeps its accounts receivable according to the deal, which is expected to close in the third or fourth quarter.
Pediatric Services stock price dropped 48 cents to $12.90 a share by the end of trading Wednesday. The company's stock has hovered between $9.71 and $17.40 over the past year.
Pediatric Services of America offers home health care and related services to infants and children whose ailments and illness can range from premature birth to cancer. It has more than 100 pediatric nursing, day treatment and respiratory therapy equipment offices in 19 states.
AT A GLANCE
•Who: Pediatric Services of America
•Headquarters: 310 Technology Parkway, Norcross
•CEO: Daniel Kohl
•Web Site: www.psakids.com