Renal-care provider DaVita, El Segundo, Calif., said it acquired 85% of HomeChoice Partners, a Norfolk, Va.-based home infusion-therapy services company, for $65 million in cash.
The remaining 15% ownership stake will be retained by HomeChoice senior management. HomeChoices management teamled by founder and president Mary Ann Copeis one of the reasons for the purchase, according to Mark Harrison, chief financial officer for DaVita. He also said home infusion therapy has prospects for unit growth; the investment for growth is relatively modest; and it fits with DaVitas core competencies.
From our perspective, this is relatively small, but we view it as an R&D acquisition to gain some experience in the sector, and, hopefully over the long term, decide whether we want to expand further into this sector, Harrison said. Its a long-term play.
As for HomeChoice, the company also provides DaVita with a good regional platform and has a good clinical-outcomes reputation, Harrison said. With about $37 million in revenue for the previous 12 months, according to a DaVita news release, HomeChoice serves more than 2,000 patients a year in the Carolinas, Georgia and Virginia. DaVita provides dialysis services for people with chronic kidney disease and has more than 1,300 outpatient dialysis facilities and acute units in more than 800 hospitals in 42 states and the District of Columbia. -- by Jessica Zigmond