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Nashville, Tennessee (October 1, 1996) - Renal Care Group, Inc. (Nasdaq/NM:RCGI) today announced that its shareholders had voted to approve the merger agreement with RENALWEST, a Mesa, Arizona-based provider of dialysis services. The transaction, which is expected to be accretive to earnings, will be a tax-free exchange of stock and will be treated as a pooling-of-interests for accounting purposes. Renal Care Group issued approximately 2.4 million shares of common stock resulting in approximately 13.6 million shares of Renal Care Group common stock outstanding after the transaction on a fully diluted basis.
Mr. Sam A. Brooks, Jr., president and chief executive officer of Renal Care Group, Inc., said, "We are pleased to have completed this merger, which is one of the largest mergers of its kind between a publicly held nephrology services company and a privately held provider of dialysis care. The merger increases the number of patients we provide dialysis services to by 34 percent. This transaction represents Renal Care Group 5 entry into the southwest U.S. market. Effective with this merger, we will now be operating an additional 19 outpatient dialysis centers and three centers providing home dialysis care to patients in the Metro Phoenix area and rural Arizona. Also, we will be providing acute dialysis services to 16 hospitals in these markets."
Renal Care Group, Inc. is a nephrology services company that was founded in June 1995 to focus on the provision of care to patients with kidney disease, including patients suffering from chronic kidney failure. With the completion of this merger, the Company provides dialysis and ancillary services to approximately 5,000 patients through 75 outpatient dialysis centers in 15 states, in addition to acute dialysis services to 42 hospitals. |
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