UroHealth Systems will acquire Richard-Allan Medical Industries for a total of $55 million in cash and stock. Richard-Allan, based in Richland, Mich., makes disposable products for minimally invasive gynecological and general surgery. Its sales totaled about $21 million in the fiscal year ended June 30. UroHealth, based in Newport Beach, Calif., makes products for urological, gynecological and general surgery. It said the acquisition will expand its product line.
Value Health plans to invest $10 million in a new public-sector division at its mental health subsidiary, which manages mental health programs for employers. States' interest in better managing mental health expenditures is creating a multibillion-dollar market, said Value Health, based in Avon, Conn. The subsidiary-Value Behavioral Health, Falls Church, Va.-initially is targeting 12 states with $5 billion in Medicaid spending. The company plans to add 55 positions for the division.
Infection-control company Steris Corp. has completed its $500 million acquisition of Amsco International. Combined, the two companies earned net income of $45 million on $545 million in revenues in 1995 and have assets of about $450 million. Steris, based in Mentor, Ohio, provides a variety of decentralized sterile-processing and infection-prevention systems. Pittsburgh-based Amsco makes steam sterilizers, surgical tables and lights. Each Amsco share was exchanged for 0.46 of a Steris share.
ProMedCo, a physician practice management company based in Fort Worth, Texas, expects to raise $70 million to $80 million in a public stock offering this year. The 18-month-old company said its focus is on developing primary-care-driven multispecialty networks. It has operations in Alabama, Kentucky and Texas. Its founders include Richard E. Ragsdale and E. Thomas Chaney, chairman and chief executive officer, respectively, of Community Health Systems, a Brentwood, Tenn.-based hospital chain.
Gartner Group, a Stamford, Conn.-based company that provides information technology advice and services, announced it has acquired Charles J. Singer & Co., a Wakefield, Mass.-based provider of market analysis and data on healthcare information technology. The transaction was valued at $4 million. Gartner will combine its healthcare services with Singer's to form product lines that include information executive strategies, physician office and managed-care information technology and technical support.
Owens & Minor's net income for the second quarter ended June 30 rose 71% to $2.9 million, or 5 cents per share, from $1.7 million, or 1 cent per share, in the year-ago quarter. Net sales rose 0.8% to about $750 million, according to unaudited results. The Richmond, Va.-based company distributes medical-surgical supplies to hospitals and other healthcare providers. For the six months, net income dropped 29% to $4.5 million, or 6 cents per share, from $6.3 million, or 12 cents per share, in the year-ago period. Sales rose 2% to $1.5 billion.
Community Psychiatric Centers completed the sale of its Priory Hospitals Group, a 15-hospital system that is the largest private-sector provider of acute psychiatric services in the United Kingdom. Las Vegas-based CPC sold the hospitals to Foray 911, a new corporation formed by Mercury Development Capital, London. After payment of taxes, severance costs and other fees, CPC will receive net proceeds of $97 million, which includes a $4.6 million subordinated note issued by Foray 911.