Manor Care takes control of supplier Company gains entry into home health area

October 25, 1995|By John Fairhall | John Fairhall,SUN STAFF

Manor Care Inc. has taken control of In Home Health Inc., a major supplier of home health care services.

The transaction announced yesterday gives Silver Spring-based Manor Care, which specializes in nursing home services, entry into the rapidly expanding home health industry.

In Home Health, based in Minneapolis, does business in 13 states and has annual revenues of $130 million. It provides skilled nursing, rehabilitation, personal care and other services to patients in their own homes.

Manor Care operates 193 facilities with 26,000 beds in 28 states. The company, which also runs an international lodging business, had health-care revenues of $1.05 billion in the 12-month period that ended Aug. 31.

Under the terms of the transaction, Manor Healthcare Corp., a subsidiary of Manor Care, assumes 64 percent voting control of In Home Health.

Manor Care gained four seats on the seven-member board and appointed one of the directors, Mark Gildea, chief executive officer of In Home Health. Judy M. Figge, who was chief executive, remains president.

Manor Care and In Home Health agreed in May to form a strategic partnership under which Manor Care would purchase 6.75 million common shares for $3.40 a share, a total of $22.95 million.

Manor Care also invested $20 million in In Home Health to purchase other stock.

Stewart Bainum Jr., chairman and chief executive of Manor Care, said the firms fit well geographically and in terms of services.

"The partnership will be an important platform for future growth in both the post-acute and assisted-living arenas," Mr. Bainum said in May.

In Home Health officials said the partnership gave them the opportunity to expand their network and services.

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