U.S. Renal Care, a privately held provider of outpatient dialysis services, plans to acquire the Dialysis Corporation of America, a provider of outpatient kidney dialysis centers.
The transaction is valued at approximately $112 million. Under the terms of the agreement, USRC, through a subsidiary, will commence a tender offer for all outstanding common shares of DCA for $11.25 per share in cash, followed by a merger to acquire all remaining outstanding shares at the same cash price.
"USRC and DCA each have built strong regional operations and this transaction permits us to build a more efficient and stronger national operation," said Chris Brengard, chairman and CEO of USRC. “We are excited about the possibilities going forward with DCA, and believe that our combined operations will result in continued quality improvement for our patients and value for our stakeholders."
Upon the closing of the transaction, USRC will provide dialysis services to approximately 5,500 patients through 84 outpatient dialysis facilities across nine states, more than 12 home dialysis programs and 24 dialysis programs in acute and specialty hospital facilities.
"Combining DCA and USRC creates a stronger enterprise while preserving the cultures of the two companies which focus on quality patient care in partnership with top-shelf physicians," said Stephen Everett, president and CEO of DCA.
DCA's board of directors unanimously approved the transaction, which is subject to customary closing conditions, including the valid tender of a majority of the total number of shares of common stock of DCA outstanding on a fully-diluted basis. USRC expects to commence the tender offer promptly and expects the transaction to close in May.