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Allion Healthcare Announces Closing of Biomed Acquisition
April 21st, 2008
2008 APR 21 -- Allion Healthcare (Nasdaq: ALLI) announced that it has been granted early termination of the waiting period required by the Hart-Scott-Rodino Act and has closed its acquisition of Biomed America, Inc. ("Biomed"), a leading provider of specialized biopharmaceutical medications and services to chronically ill patients. The Company completed the closing on April 4, 2008 and under the terms of the agreement, Allion has acquired Biomed for $48 million in cash, 9.35 million shares of Allion common and Series A-1 preferred stock and the assumption of $18.6 million of Biomed debt. Allion may also make an earn-out payment in 2009 should Biomed achieve certain financial performance benchmarks during the first 12-month period post closing. To partially fund the cash portion of the transaction, Allion also consummated a $55 million senior secured credit facility with CIT Healthcare LLC. At a later date, the Company will seek shareholder approval to convert the newly issued Series A-1 preferred stock into Allion common stock and will replace two of its directors with nominees to be designated by the former shareholders of Biomed America. "This acquisition is an integral part of our overall growth strategy," said Mike Moran, Chairman and CEO of Allion Healthcare. Mr. Moran added, "In addition to Biomed's focus on providing infused and injected drugs to patients with chronic conditions, Biomed brings a leading reputation among patients and referring physicians managing hemophilia, immune deficiencies and other chronic conditions. Importantly, with the completion of this acquisition, we will now have an enhanced product array and an expanded market opportunity. There is also benefit from a diversified payor base since the addition of Biomed has increased the revenue we receive from non-governmental payors." The Company anticipates that the acquisition will be accretive to its 2008 earnings. A conference call will be scheduled to further discuss the elements of the transaction. CIT Capital Securities LLC served as the exclusive financial advisor to Allion on the transaction. Keywords: Allion Healthcare, Biopharmaceuticals, Drugs, Therapies, Pharmaceuticals. This article was prepared by Biotech Business Week editors from staff and other reports. Copyright 2008, Biotech Business Week via NewsRx.com.
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