INDIANAPOLIS--Arcadia Resources has announced the sale of its
home health equipment and industrial staffing business in three
separate transactions and is now focused on two divisions: Arcadia
Home Care/Medical Staffing and DailyMed pharmacy services. The HHE
transactions have been closed, and a definitive agreement has been
signed for the sale of the industrial staffing business, which will
close on May 29.
Total cash proceeds from the sales are expected to be $11.2
million, including $2 million in retained accounts receivable. Of
the total, $1.5 million will be paid to the company over the next
12 months. The company can receive an additional $1.6 million based
on the future performance of the industrial staffing
business.
In 2007, Arcadia--which had made more than 20 DME acquisitions and
opened stores inside Sears and Wal-Mart--sold most of its DME
locations and restructured operations.
Arcadia said it expects to generate $8.8 million in cash net of
certain obligations and will use $5.9 million to reduce its debt by
approximately 15 percent. The company said the remaining $3.3
million from the sales, along with $3 million in new debt raised in
March 2009, will support its growing DailyMed business, which
organizes a patient's meds into pre-sorted packets marked with the
date and time they should be taken.
Wednesday, May 20, 2009