AUGUST 12, 2015
Envision Healthcare enters definitive agreement to acquire Rural/Metro
GREENWOOD VILLAGE, Colorado – Envision Healthcare Holdings, Inc. (NYSE: EVHC) (Envision), has entered into a definitive agreement to acquire Rural/Metro Corporation (Rural/Metro) through its medical transportation segment American Medical Response (AMR). This pending acquisition enhances Envision’s mobile integrated healthcare delivery capability, a key component of its care coordination model amongst its pre-hospital, acute care and post-acute care services.
Rural/Metro is expected to generate annualized 2015 revenue of approximately $600 million. Upon closing, the transaction is expected to be accretive to Envision’s earnings. The pending acquisition is subject to regulatory approval and customary closing conditions, and is expected to close in the fourth quarter of 2015.
“As healthcare services models shift toward a more coordinated approach, the role of medical transportation clinicians takes on greater strategic significance,” said William A. Sanger, chairman, president and chief executive officer of Envision. “With our advanced mobile delivery model, the practice of paramedics and EMTs is being expanded beyond the traditional role of providing pre-hospital stabilization and transport to healthcare facilities. As part of our team-based approach, they apply their clinical training in ways that improve the patient experience at numerous sites, including post-acute settings. In the process they become integral contributors to improving outcomes.”
During the past several years, AMR has achieved significant growth and operating efficiencies through process improvement, effective use of technology and optimizing resource utilization while simultaneously improving clinical outcomes for patients and developing new platforms for health systems. We believe these initiatives will be enhanced with the combination of AMR and Rural/Metro.
“As a former Rural/Metro paramedic and market manager, I am acutely aware of the dedication, passion and clinical expertise that its nearly 7,500 caregivers and support personnel provide to their communities. AMR looks forward to having them on our team and combining the innovative practices of both organizations, delivering stability and growth opportunities,” said Ted Van Horne, president and chief executive officer of AMR. “This acquisition will broaden our ability to partner with fire departments and local government leadership to build increasingly better community health models. It also gives us the ability to offer specialty fire capabilities within our industrial health and safety business lines.”
Scott Bartos, chief executive officer of Rural/Metro added, “We have spent the past several years fine-tuning our operations and enhancing the services we provide to our patients and community partners. Envision’s mobile integrated healthcare strategy will allow us to provide even greater value to those constituents while creating new opportunities for our team members. Combining with AMR and aligning with Envision Healthcare will enable us to be active contributors to solutions that are shaping the future of healthcare.”
Envision has received committed financing from Barclays and Goldman, Sachs & Co. in connection with the transaction. Subject to regulatory approval and customary closing conditions, the pending acquisition is expected to close during the fourth quarter of 2015.
Envision’s management team will discuss the Rural/Metro transaction during its 2015 Second Quarter earnings conference call, which will be held at 5 p.m. Eastern Time today. Details of the call can be found on Envision’s investor relations website at investor.evhc.net.
About Envision Healthcare Holdings, Inc.
Envision Healthcare Holdings, Inc., and our more than 35,000 employees and affiliated clinicians, offers an array of healthcare related services to consumers, hospitals, healthcare systems, health plans and local, state and national government entities. Through Envision Healthcare Corporation, we operate American Medical Response, Inc. (AMR), EmCare Holdings, Inc. (EmCare) and Evolution Health, LLC (Evolution Health). AMR is a provider and manager of community-based medical transportation services, including emergency (‘911’), non-emergency, managed transportation, air ambulance and disaster response. EmCare is a provider of integrated facility-based physician services, including emergency, anesthesiology, hospitalist/inpatient care, radiology, tele-radiology and surgery. Evolution Health provides comprehensive care to patients across various settings, many of whom suffer from advanced illnesses and chronic diseases. We are headquartered in Greenwood Village, Colorado. For additional information, visit investor.evhc.net.
