BioScrip makes buy, announces public offering

DENVER - BioScrip, a provider of infusion and homecare management solutions, has entered into an agreement to buy the business of HS Infusion Holdings.

The Hammonton, N.J.-based Home Solutions provides home infusion and home nursing products and services to patients across the East Coast. Its principal shareholder is KRG Capital Partners, a Denver-based private equity firm.

“The combination of BioScrip and Home Solutions brings together two highly complementary core infusion services portfolios that will have greater scale and financial resources,” the companies said in a press release.

BioScrip will buy substantially all of the assets and assume certain liabilities of Home Solutions and its subsidiaries for $85 million—$80 million in cash and $5 million in shares of the company's common stock.

BioScrip and Home Solutions generated revenues of $982 million and $109 million, respectively, in 2015. On a pro forma basis, the combined company is expected to generate revenues of more than $1 billion.

“The additional financial contribution from Home Solutions, including anticipated synergies, is expected to strengthen the company's balance sheet and leverage profile, thereby improving BioScrip's strategic flexibility and competitive positioning and realigning the company as a growth platform in the attractive post-acute care segment,” the release states.

Upon completion of the transaction, Daniel Greenleaf will become CEO of BioScrip and will join the company's board of directors. Previously, he was president and CEO of Coram Specialty Infusion Services, a top perfoming healthcare company with about $1.2 billion in revenues, 5,000 employees and 85 locations. Under Greenleaf's tenure, Apria Healthcare and its private equity owner, The Blackstone Group, sold Coram to CVS Caremark for $2.1 billion.

“(This) underscores the value created for Coram's home infusion platform during Mr. Greenleaf's tenure,” the release states.

Rick Smith, director and CEO of BioScrip, will become vice chairman of the board.

BioScrip will continue to be headquartered in Denver and will maintain branches throughout the United States. It will also maintain Home Solutions' billing and operations center in Hammonton.

BioScrip announces public offering

DENVER - BioScrip has commenced an underwritten public offering for its common stock, with Jeffries LLC acting as sole book-running manager. The company expects to grant underwriters a 30-day option to purchase up to an additional 13% of the shares of common stock offered in the public offering. BioScrip plans to use the net proceeds from the offering to fund the cash portion of its $85 million purchase of Home Solutions and to repay a portion of its outstanding borrowings under its revolving credit facility. It also plans to use the proceeds for general corporate purposes.