Exhibit 99.1
News
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RENAL TREATMENT CENTERS, INC.
FOR IMMEDIATE RELEASE
Contact: Ronald H. Rodgers, Jr.
Vice President - Finance and
Chief Financial Officer
610-644-4796
RENAL TREATMENT CENTERS TO ACQUIRE 12 DIALYSIS FACILITIES
IN SOUTHERN CALIFORNIA AND NEVADA
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COMPANY ALSO ANNOUNCES INCREASE IN ITS CREDIT FACILITY
AND OTHER TRANSACTIONS
Berwyn, Pennsylvania (October 7, 1997) - Renal Treatment Centers, Inc. (NYSE:
RXT) today announced that it has entered into definitive agreements to acquire
substantially all of the assets of 12 end-stage renal disease outpatient
dialysis centers and related acute care programs from California Kidney Centers;
California Kidney Centers, Orange, LLC; Dialysis Systems, LLC; California Kidney
Centers, Inpatient Services, LLC; and Dialysis Systems, Inpatient Services, LLC.
Ten of the outpatient dialysis centers are located in southern California and
two of the centers are located in Las Vegas, Nevada. The 12 outpatient dialysis
centers currently provide treatments to approximately 1,460 patients, including
transient patient equivalents. The acute care programs provide approximately
13,700 treatments annually at 29 hospitals in the service areas of the
outpatient dialysis centers.
The transaction is expected to be completed in November 1997, subject to
receipt of required regulatory approvals, including those required under the
Hart-Scott-Rodino Antitrust Improvements Act and the approval of the Attorney
General of the State of California, and certain other contingencies. The
acquisition would be accounted for as a purchase. The terms of the transaction
were not disclosed.
Robert L. Mayer, Jr., chairman, president and chief executive officer of
Renal Treatment Centers, Inc., said, "This acquisition is a very important
transaction for our company for several reasons. In terms of the number of
dialysis centers and acute care agreements, it will be our largest acquisition
to date. The terms of the acquisition are consistent with the Company's
strategic practices. In addition, the integration of these centers into our
operations will enable us to substantially expand our service
areas into the southern California and Las Vegas markets. The acquisition will
also be consistent with the Company's philosophy of developing regional clusters
of dialysis centers, as we will be acquiring existing clusters in southern
California and Las Vegas. Also, we are very impressed with the quality of care
provided in the facilities and the high level of professionalism and competency
of the staff working in these centers."
The Company also announced the following transactions:
The Company's credit facility through a consortium of banks has been
increased from $200 million to $350 million, effective September 26, 1997.
The Company intends to use the additional borrowing capacity to support the
Company's acquisition and development activities and general working
capital requirements.
Effective September 1, 1997, the Company acquired substantially all of the
assets of Kidney Care, Inc., which operated an end-stage renal disease
outpatient dialysis center in Macon, Georgia, serving approximately 80
patients and operating 21 treatment stations.
Effective October 1, 1997, the Company acquired all of the outstanding
stock of Tomball Dialysis, Inc., which operated an end-stage renal disease
outpatient dialysis center in Tomball, Texas, serving approximately 54
patients and operating 13 treatment stations.
As of October 1, 1997, the Company's clinical laboratory, located in Las
Vegas, Nevada, has been fully licensed, and the laboratory will begin
testing patient samples in December 1997.
This press release contains forward-looking statements. The Company
cautions that a number of factors, including those expressed in its Annual
Report on Form 10-K for the year ended December 31, 1996, and unforeseen changes
in economic conditions in the United States and Argentina, could cause actual
results to differ materially from those expressed in any forward-looking
statements. Furthermore, there can be no assurance that the transactions
described in the first paragraph above will be completed.
Renal Treatment Centers, Inc. provides dialysis treatments and ancillary
services to patients suffering from chronic kidney failure, primarily in its
freestanding outpatient dialysis treatment centers or in the patient's home.
With the addition of the above centers, the Company will operate a total of 168
dialysis centers in 23 states, the District of Columbia and the Republic of
Argentina. In these centers, the Company will be providing dialysis services
for approximately 12,025 patients. The Company will also provide inpatient
dialysis services to over 125 hospitals.