Advanced Medical plans to acquire IVAC Medical Systems for $400 million in a strategy to build a "global leader" in intravenous infusion therapy products. The agreement has been approved by both companies' boards but still requires clearance from antitrust authorities. Advanced Medical anticipates finalizing the deal in four to six months. The combined company, with annual revenues of about $350 million, will be much more competitive, executives said. It competes against Baxter International, Abbott Laboratories and McGaw. Advanced Medical sought-but failed-to buy IVAC from owner Eli Lilly & Co. in 1994. IVAC was purchased from Lilly in a leveraged buyout at the end of 1994. Advanced Medical, based in San Diego, earned $1.7 million on $53.9 million in revenues in the first half of 1996. IVAC, also based in San Diego, earned $4.2 million on $112.9 million in revenues during the same period.
COHR, a Los Angeles-based outpatient company, continued its aggressive buying of equipment-service firms with two new acquisitions. It now has bought a total of 16 companies in the past 21/2 years, and about a dozen deals are in the works. The latest purchases were of Anesthesia Plus, Elk Grove, Calif., and Mid-Atlantic Clinical Engineering Services, Fredericksburg, Va. Mid-Atlantic was owned by a VHA division. Terms of the deals weren't disclosed. In other news, COHR reported a 104% increase in net income to $931,000, or 20 cents per share, in its fiscal 1997 first quarter ended June 30. That compares with net income of $456,000, or 22 cents per share, in the year-ago quarter. Revenues climbed 33% to $20.5 million.
Boston-based Prism Health Group has completed a $12 million private placement of equity to fund the expansion of its post-acute services. The private placement was underwritten by Alex. Brown & Sons, a Baltimore-based investment bank. The funds were raised from a broad group of investors. The company plans to use its second round of equity financing to expand its home-care division, broaden its geographic presence in the subacute sector and invest in clinical and information systems. The company has announced it intends to acquire Colonial Care Certified, a Cape Cod, Mass.-based home-care provider with $3.6 million in revenues. It operates four branch sites in southeastern Massachusetts.