NU Online News Service, June 26, 1:55 p.m. – Continental Home Healthcare Ltd., Glendale, Calif., today announced the acquisition of nearly all the assets of Medical Mart of Las Vegas, Nevada, a home medical business with current annual revenues of $1.4 million.
Continental acquired the assets and liabilities of the company with no cash payments for a net purchase price of $180,000 in debt, the company says. The purchase price is likely to be reduced further as a result of negotiations concerning vendor agreements.
The principal and founder of Medical Mart, Tom Gray, will remain with Continental, the company says.
Medical Mart has operated in Las Vegas for 19 years and specializes in rehabilitation products and supply of ostomy, urological and wound-care products.
The expanded product offering through the acquired supply line provides additional marketing opportunities to Continental’s preferred provider contract with the 130,000-member, Las Vegas-based, Hotel Employees and Restaurant Employees International Union Welfare Fund.
Robert Thornton, president, said the Medical Mart acquisition will be immediately accretive to earnings per share as the company is exposed to Continental’s large patient base and existing contracts, has access to the volume discounts available through Continental’s buying network and vendor supply agreements, and reduces administrative costs and overhead achieved through economies of scale.
Management will continue to seek out strategic acquisitions which can add to Continental’s product offering, provide geographic distribution and offer other significant opportunities for profitable growth, the company says.