Healthcare Services Group, Inc. announced today that on July 11, 2013, it entered into an asset purchase agreement with Platinum Health Services, LLC (“Platinum”) to acquire substantially all of its operating assets.
Platinum is a privately-held provider of professional housekeeping, laundry and maintenance services to long-term and post-acute care facilities.
The purchase price consists of a cash payment of approximately $3,800,000, assumed debt of approximately $1,200,000 and the issuance of approximately 1,000,000 shares of our common stock. Additionally, upon the achievement of certain financial and retention targets, Platinum will be eligible for contingent consideration paid by the future issuance of our common stock. They expect the transaction to add more than $60,000,000 in annualized revenues and be accretive to future earnings per share.
The Company intends to release its financial results for the three and six months ended June 30, 2013 on Tuesday, July 16th. The Company will also host a conference call on Wednesday, July 17th at 8:30 a.m. Eastern Time to discuss its results. The call may be accessed via phone at 800-893-5360.