DIAGNOSTEK ADDS EPIC’s 2 MIL. CUSTOMER BASE TO MAIL-ORDER BUSINESS
DIAGNOSTEK ADDS EPIC's 2 MIL. CUSTOMER BASE TO MAIL-ORDER BUSINESS with the $13.5 mil. acquisition of the EPIC Health Care Group. Headquarters in Elmsford, N.Y., the EPIC Health Care Group, Inc. says it has 150 union and business clients. On June 21, the companies jointly announced reaching a definitive agreement to merge for an aggregate price of $13.5 mil. The deal also includes an earn-out based on the future performance of EPIC. The first step in the planned acquisition will be a cash tender offer, which commenced during the last week of June, for all shares of EPIC at $1.04 per share for the 11.3 mil. shares of common stock and $7.70 per share of the firm's 1.5 mil. preferred shares. EPIC's board granted Diagnostek a proxy option on their shares and agreed to tender all of them to Diagnostek. EPIC's financial advisor for the deal is Furman Selz Mager Dietz & Birney. Diagnostek Chairman Nunzio DeSantis said the merger agreement "firmly places Diagnostek as the second largest mail-service pharmacy in the country" in terms of both clients and sales. EPIC's sales for the year ended Nov. 30 were $39.3 mil. The company reported a $1.1 mil. loss. For the three months ended Feb. 28, EPIC revenues totaled $11.3 mil. Albuquerque-based Diagnostek, through its 1989 acquisition of HPI Health Care Services Inc. ("The Pink Sheet" May 8, 1989, T&G-4) claims to already be the largest provider of hospital pharmacy management services. The company additionally owns diagnostic imaging centers. FY 1990 (ended March 30) revenues were $147.3 mil., with earnings of $7.2 mil. EPIC's affiliations with organized labor customers will mesh well with Diagnostek's AFL-CIO contracts and its international clients. EPIC's customers include the International Ladies' Garment Workers Union and Pan Am. Diagnostek entered the mail-order business three years ago with the $1.8 mil. acquisition of Health Care Services Inc.
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