New Brunswick, N.J.-based Johnson & Johnson has completed its previously announced acquisition of Cordis Corp., a Miami-based maker of cardiac products. The move pairs the highly successful Johnson & Johnson cardiac stent with Cordis' line of catheters and balloons (Nov. 13, 1995, p. 25). Under the agreement, each share of Cordis was traded for 1.13 shares of Johnson & Johnson. The transaction is valued at $1.8 billion. Johnson & Johnson plans to consolidate its interventional cardiac business with Cordis. The new unit will be based in Florida and directed by Cordis President Robert Strauss.
Renal Care Group, a Nashville, Tenn.-based dialysis company, said its initial public offering of 3.9 million shares of common stock yielded proceeds of $74 million. The offering's underwriters, Equitable Securities Corp. and Morgan Keegan and Co., opted to purchase an additional 585,000 shares at $18 per share. RCG also will acquire five other dialysis companies for a total of $135.8 million in stock, cash, notes and assumed debt. The companies, based in the South and Midwest, are KidneyCare, Medical Enterprises, D.M.N. Professional Corp., Tyler Nephrology Associates and Kansas Nephrology Association. RCG said it will use the IPO's proceeds to pay the cash portion of the acquisitions, as well as repay most of the assumed debt arising from the deal. RCG, founded in June 1995, provides dialysis and ancillary services to 2,700 patients through 41 outpatient dialysis centers in eight states. Combined pro forma net revenues in fiscal 1995 totaled $53 million.
AmeriNet has acquired Kowalski-Dickow Associates, a Milwaukee-based materials management consulting firm. The company will operate as a subsidiary. Terms weren't disclosed. It will continue to work with hospitals that aren't affiliated with AmeriNet, said Jamie Kowalski, a partner. "We will deal with AmeriNet clients just as we deal with other clients," Kowalski said. St. Louis-based AmeriNet represents about 1,700 hospitals through its group purchasing contracts. It reported contract purchases of about $2.2 billion in 1994.
Health and Retirement Properties Trust has added a new tenant to its investment portfolio: Health Insurance Plan of Greater New York. The New York-based HMO leases a clinic and 160-car parking garage purchased by the Newton, Mass.-based real estate investment trust for $12 million. The White Plains, N.Y.-based properties were purchased from a developer whose name was not disclosed.
NCS HealthCare, Beachwood, Ohio, sold 4.24 million shares at $16.50 each in its initial public offering last month. Its shares are traded on the NASDAQ exchange. The company provides pharmacy services to more than 600 long-term-care facilities in Indiana, Michigan, Ohio and Pennsylvania. In 1995, NCS reported net income of $1.8 million on revenues of $65.6 million. The company said it intends to use $27 million of the proceeds to repay debt and the remainder to finance acquisitions. The company made 12 acquisitions in 1995.
The Company Doctor, Arlington, Texas, sold 1.6 million units at $5.25 each in its initial public offering last month. The units consisted of one share of common stock and one warrant. The shares, units and warrants are traded on the NASDAQ SmallCap Market. The company manages the practices of physicians who specialize in work-related illnesses and injuries. It operates six occupational medical clinics in Arkansas, Louisiana and Texas. For the year ended June 30, 1995, the company lost $194,000 on revenues of $3 million.