Hooper Holmes Acquires American Service Bureau in Major Health Information Services Deal

Strategic Insights -

Hooper Holmes, a healthcare and health information services company, has signed a definitive agreement to acquire American Service Bureau (ASB Meditest), an Olsten Corporation subsidiary, in a deal worth $34.5 million. The transaction, which is subject to approval by Hooper Holmes shareholders and other customary closing conditions, is expected to close in late summer 1995. The acquisition is a strategic move to strengthen Hooper Holmes' national market presence and expand its capabilities in the health information services industry.

Key Takeaways:

  • Hooper Holmes will acquire ASB Meditest, a leading provider of health information services, for $34.5 million.
  • The transaction is structured as a swap, with Olsten Corporation acquiring Hooper Holmes' Nurse's House Call division.
  • ASB Meditest reported 1994 revenues of approximately $80 million, while Nurse's House Call reported 1994 revenues of $159.3 million.
  • The combined operations of Portamedic and ASB Meditest will provide significantly expanded coverage and create opportunities for operating efficiencies.
  • The acquisition will strengthen Hooper Holmes' balance sheet and provide an excellent platform to support earnings growth going forward.
  • Hooper Holmes will consolidate ASB Meditest's 100 locations across the United States with its own 136 locations, operated by Portamedic.
  • The transaction marks a significant move for Hooper Holmes in the growing occupational health and safety niche market.

Statistics:

  • Hooper Holmes will pay $34.5 million in cash to acquire ASB Meditest, a significant portion of which will be used to repay outstanding debt.
  • ASB Meditest reported 1994 revenues of approximately $80 million, while Nurse's House Call reported 1994 revenues of $159.3 million.
  • The combined operations of Portamedic and ASB Meditest will have estimated 1995 revenues of over $240 million.

Sources:

  • Business Wire, "Hooper Holmes, Inc. Announces Definitive Agreement to Acquire American Service Bureau, Inc.", May 30, 1995
  • Hooper Holmes, Inc., "Press Release", May 30, 1995