Message #9 From:
NewsBot Date: July 27, 2006 05:00:00 AM
PHLH News Pacer Health Corporation Sells Selected Georgia Assets for $2.6 Million
MIAMI--(BUSINESS WIRE)--July 27, 2006--Pacer Health Corporation (OTCBB:PHLH), an owner-operator of acute care hospitals, medical treatment centers and psychiatric care facilities in the Southeastern United States, announced today that it has signed a binding letter of intent to sell certain assets of both the Minnie G. Boswell Memorial Hospital and the Boswell Parker Nursing Center to Health Systems Real Estate, Inc., a Georgia-based non-profit corporation.
The agreement calls for Health Systems Real Estate to purchase the tangible real and personal property assets of the facilities in a cash transaction for the aggregate purchase price of $2.6 million. Pacer Health will continue to operate Minnie G. Boswell Memorial Hospital pursuant to a triple-net lease from Health Systems Real Estate, while an affiliate of Health Systems Real Estate assumes the operation of the Boswell Parker Nursing Center.
"The proposed transaction allows Pacer Health to focus on our core business of operating Minnie G. Boswell Memorial Hospital as we proceed with plans to build a replacement facility," said Rainier Gonzalez, chairman and CEO of Pacer Health. "We also wanted to make sure that the nursing home continues to operate at the highest levels of quality care once we build the new hospital facility. Health Systems Real Estate ensures that a seasoned nursing home administrator remains at the helm to provide the high level of critical care to which area residents have grown accustomed."
Pacer Health projects that the proposed agreement will strengthen its working capital and balance sheet through the divestment of real property assets and allow the company to narrow its strategic focus on acute care facility management through the sale of its nursing home operations.
The proposed transaction is subject to continued due diligence by both parties as well as the completion of required filings and governmental approvals. Pacer Health anticipates no interruption in service at either facility during the execution phase of this agreement.
An accredited JCAHO (Joint Commission on Accreditation of Health Care Organizations) facility, Minnie G. Boswell is a 25-bed acute care hospital primarily serving the residents of Greensboro, Georgia. The hospital's current facilities were constructed in 1949, and though Pacer Health has substantially improved the property, the structure itself remains outdated, resulting in costlier implementation of new technologies.
Pacer Health recently announced the purchase of 15 acres of land adjacent to Interstate 20 in Greene County, Georgia, to construct a replacement facility for Minnie G. Boswell Memorial Hospital, which Pacer Health has managed and operated since June 22, 2004.
The new facility will provide easier and more convenient access for patients as it will be closer to the center of the county, adjacent to a major thoroughfare, and only about one-and-a-half miles outside of Greensboro. The new location also is within three-and-a-half miles of the existing hospital, facing I-20 and just east of Highway 44.
About Pacer Health Corporation
Pacer Health Corporation is an owner-operator of acute care hospitals, medical treatment centers, and psychiatric care facilities serving non-urban areas throughout the Southeastern United States. Please visit http://www.pacerhealth.com for more information.
Legal Notice Regarding Forward-Looking Statements: "Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. Pacer Health disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to, risks associated with changes in general economic and business conditions, actions of our competitors, and changes in our business strategies.
