May 23, 1996|By Michael Dresser | Michael Dresser,SUN STAFF
Capstone Pharmacy Service Inc., a Baltimore-based supplier of pharmacy services to nursing homes, said yesterday that it will broaden its product line by acquiring the assets of MediDyne Corp., a New Jersey company that supplies medical products to the same industry.
Capstone said it has signed an agreement to buy MediDyne from its parent company, Toronto-based Counsel Corp., which is also the largest holder of Capstone shares with about 25 percent of its stock. Capstone did not disclose a purchase price.
MediDyne supplies nursing homes with such products as feeding tubes and catheters, which Capstone currently does not distribute. Such products are paid for under Medicare Part B.
Capstone President Dirk Allison said the acquisition "really makes us a complete service provider for the nursing home."
Capstone projected that, on an annualized basis, the acquisition would add $12 million in revenue in 1996. Allison said Capstone ** is now on a pace for $92 million to $93 million in 1996 revenues.
Allison said the acquisition will also help Capstone by bringing it into contact with thousands of new potential customers. Capstone currently supplies about 44,000 patient beds, while MediDyne supplies 27,000 patient beds. Allison said only about 5,000 to 10,000 of those overlap.
Counsel acquired MediDyne early this year at a time when the company was on the market but when Capstone was not in a position to make the purchase because it was absorbing two other acquisitions, Allison said. He said Counsel made the acquisition to ensure that MediDyne would be available when Capstone could make the purchase.
"Largely, they see that it makes more sense for the Counsel shareholders and the Capstone shareholders to have it under one roof," Allison said.
Allison said MediDyne's 40 to 50 employees would not be moving to Baltimore but that the company's headquarters could be consolidated with a Capstone office in Teaneck, N.J. The Capstone executive said the acquisition would not result in any loss of jobs at MediDyne.
Capstone has about 700 employees.
Pub Date: 5/23/96
