Medical Industries of America Acquires Pharmacy Care Specialists

Strategic Insights -

Medical Industries of America Inc. has announced its acquisition of 100% of Pharmacy Care Specialists Inc., a privately held, closed-door pharmacy company specializing in delivering prescription pharmaceuticals to the Adult Congregal Living Facilities (ACLF) industry in Florida. The acquisition provides a strategic opportunity for Medical Industries to expand its services and cross-market its Hi-Tech Home Infusion Services to PCS' broad customer base. Pharmacy Care Specialists, established in 1996, has earned an outstanding reputation for managing the pharmaceutical needs of the Florida ACFL industry, with primary emphasis in the Tampa-St. Petersburg area.

Key Takeaways:

  • Medical Industries of America acquired 100% of Pharmacy Care Specialists Inc. for $680,000 in common shares, $90,000 in cash, and an "earn-out" financing arrangement.
  • Pharmacy Care Specialists will become a wholly owned subsidiary of Medical Industries of America immediately.
  • 1998 revenue and earnings projections for PCS are expected to exceed $3.5 million and $300,000, respectively.
  • The acquisition is expected to enhance opportunities for Medical Industries to cross-market its services to PCS' customer base and to over 4,000 physicians through its network.
  • Medical Industries of America offers a range of medical services, including mobile cardiac catheterization, air ambulance services, pain rehabilitation, and sleep centers.
  • The company's Chairman and CEO, Paul Pershes, highlighted the importance of Pharmacy Care Specialists in enhancing the company's bottom line and expanding its services.

Statistics:

  • The acquisition was valued at $680,000 in common shares, $90,000 in cash, and an "earn-out" financing arrangement.
  • 1998 revenue projections for PCS are expected to exceed $3.5 million.
  • 1998 earnings projections for PCS are expected to exceed $300,000.
  • PCS serves over 4,500 Adult Congregal Living Facilities (ACLFs) in Florida, with primary emphasis in the Tampa-St. Petersburg area.
  • Medical Industries of America operates in over 30 locations across Florida, providing a range of medical services.

Sources:

  • Medical Industries of America Inc. press release, April 22, 1998.
  • Pharmacy Care Specialists Inc. information.