Home health provider Gentiva Health Services said it sold its respiratory therapy/home medical equipment and infusion therapy businesses to a subsidiary of Lincare Holdings, Clearwater, Fla., which provides respiratory therapy services in the home. Financial terms of the all-cash transaction were not disclosed.
Gentiva sells respiratory, infusion businesses
The deal includes about 40 locations in seven states that provide respiratory/home medical equipment and/or infusion therapy, according to Atlanta-based Gentiva, which said these businesses generated about $55 million in revenue for the 12 months ended on Sept. 27, 2009.
“The transaction continues our efforts to focus Gentiva on our core expertise in providing in-home geriatric care services,” Gentiva President and CEO Tony Strange said in a news release. Strange also said “simplifying” Gentiva's business will allow the company to direct its resources on internal and external growth initiatives in home health and hospice as well as the completion of strategic acquisitions. “We wish everyone in the respiratory therapy/home medical equipment and home infusion businesses the best for the future and thank them for their contributions to Gentiva,” Strange added.
Gentiva said it expects to report financial results from these businesses as discontinued operations in the company's consolidated financial statements for the year ended Jan. 3, 2010. The company also expects the discontinued operations to reflect a small operating loss for fiscal year 2009, separate from any special items or asset-impairment charges.
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