Total Renal Care Announces the Signing of Definitive Agreements for the Sale of Selected Non-Continental U.S. Operations
TORRANCE, Calif., Jan. 20 /PRNewswire/ -- Total Renal Care Holdings, Inc. (NYSE: TRL), the second-largest (and largest independent) worldwide provider of integrated dialysis services, today announced the signing of definitive agreements to sell its dialysis businesses in Argentina, Europe, Puerto Rico and Hawaii for approximately $161 million (including the assumption of $3 million in debt) to Fresenius Medical Care A.G.
The sales are subject to the receipt of required bank and regulatory approvals, including antitrust approvals and certificate of need transfers and other closing conditions. The purchase price will be adjusted for increases or decreases in net tangible equity from September 30, 1999 until the closing date. The transactions are expected to close during the second quarter of 2000.
"Back in November 1999, we announced our intention to sell these assets and the signing of these agreements represents an important first step in restructuring our balance sheet and reducing our leverage," stated Robert Santelli, TRL's Vice President, Corporate Development.
Total Renal Care Holdings, Inc., based in Torrance, California, is the second-largest (and largest independent) worldwide provider of dialysis services for patients suffering from chronic kidney failure. The Company owns and operates kidney dialysis centers and home peritoneal dialysis programs in 33 states, as well as Washington, D.C., Puerto Rico, Guam, Argentina and several European countries. It also provides acute hemodialysis services to inpatients at approximately 320 hospitals. As of November 1, 1999, Total Renal Care operated 574 outpatient dialysis facilities serving approximately 45,500 patients.
This release contains forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding potential strengthening of operations and financial performance and involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, the uncertainties associated with governmental regulation, general economic and other market conditions, and the "risk factors" set forth in the Company's filings with the Securities and Exchange Commission, including but not limited to (1) the risks relating to the large amount and terms of the Company's outstanding debt, (2) risks relating to the Company's failure to build adequate internal systems and controls, and (3) possible changes in Medicare, Medicaid and private reimbursement rates. The forward-looking statements should be considered in light of these risks and uncertainties.
SOURCE Total Renal Care Holdings, Inc.
CONTACT: Richard Lester, Vice President, Investor Relations of Total Renal Care, Inc., 212-794-9348/