DaVita, a large Denver-based dialysis services provider, plans to sell its home infusion therapy business as it works to digest the $4.7 billion acquisition of medical group HealthCare Partners.
BioScrip, an Elmsford, N.Y., infusion services and home-care company, said today it has signed an agreement to buy DaVita's majority stake in HomeChoice Partners for $70 million in cash.
DaVita acquired an 85% stake in HomeChoice Partners
, Norfolk, Va., for $65 million in 2007. HomeChoice Partners' senior management team retained the remaining 15% ownership stake.
Home infusion therapy has been a noncore business for DaVita, according to Anton Hie, an associate at RBC Capital Markets. Despite the excitement around home-care services, “It's never going to be anywhere near in-center care,” he said.
HomeChoice Partners generates $70 million in annual revenue and has 14 infusion pharmacy locations in eight states and the District of Columbia, according to a news release from BioScrip
DaVita last month completed its acquisition of HealthCare Partners
, a Torrance, Calif., physician network, and renamed itself DaVita HealthCare Partners.
The acquisition raised eyebrows when it was first announced, as it represented a new direction for the renal-care company with few obvious synergies. Hie suggested that the company has been tight-lipped about the integration, providing few updates ahead of its quarterly results.
DaVita is the second-largest provider of dialysis services by market cap, after Fresenius Medical Care.
As of Sept. 30, DaVita operated or provided administrative services at more than 1,900 outpatient dialysis centers, according to its website.