Message #10 From:
NewsBot Date: October 2, 2006 05:00:00 AM
PHLH News Pacer Health Corporation to Sell Equity and Management Stake in Southpark Community Hospital for $3 Million
MIAMI--(BUSINESS WIRE)--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 agreement to sell its 60
percent ownership stake in Southpark Community Hospital to Southpark
Holdings II, LLC, a Louisiana company, at a purchase price of $2 million.
As part of the transaction, Pacer Health also terminates its management
agreement with Southpark Community Hospital, a 54,000-square foot, acute
care facility located in South Lafayette, Louisiana, for a separate
consideration of $1 million. This brings the asset sale total to $3
million.
The sale is pending the completion of definitive documentation, required
filings and governmental approvals. Pacer Health and Southpark Holdings
II anticipate no interruption of service at the hospital during the
execution phase of this agreement, which is expected to be finalized no
later than October 2, 2006.
Meanwhile, complete day-to-day management and operational control of
Southpark Community Hospital already has been successfully transferred
to Southpark Holdings II.
“The sale of our equity and management
holdings in Southpark Community Hospital will strengthen our working
capital and positively impact our balance sheet,”
said Rainier Gonzalez, chairman and CEO of Pacer Health. “We
believe we have left our mark on the local community as we successfully
restructured Southpark's operating procedures and improved the quality
of patient care over the past year, and we leave the facility in very
capable hands.”
Southpark Community Hospital primarily serves the residents of South
Lafayette, Youngsville and Broussard, Louisiana. The hospital offers a
comprehensive suite of acute care services including inpatient and
outpatient surgery, radiology services and 24-hour laboratory.
Southpark's facilities include spacious private patient rooms, 16
PACU/RR observation beds, 16 acute care beds and three intensive care
beds. Pacer Health acquired its 60 percent ownership interest in
Southpark Community Hospital and concurrently assumed management of the
hospital in December 2005.
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: "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.
