Expands Penetration of Sun Belt Market; 8 New Office Locations in the Southeast Region Bringing Companywide Total to 20 Offices and Increases
Revenue Base by 35%
DALLAS, Oct. 29 /PRNewswire-FirstCall/ -- Crdentia Corp. (OTC Bulletin Board: CRDT), a leading healthcare staffing company, today announced that it has completed the acquisition of ATS Health Services, a provider of temporary nurse and allied health staffing services to hospital, private practice, clinic, home care, corporate and occupational facilities in large metropolitan areas in Florida, Georgia and North Carolina. Terms of the transaction include $3.3 million in cash and 2.1 million shares of the Company's common stock valued at $700,000. The acquisition is expected to be immediately accretive to Crdentia.
ATS Health Services, based in Jacksonville, Florida, has six offices in Florida (including the hospital-based AFLEX program in Jacksonville), one in Georgia and one in North Carolina. ATS Health Services has plans to expand to five additional cities in Florida, and Crdentia will carefully review these plans over the coming months. ATS Health Services has traditionally been very strong in the home care market and has an excellent presence in the hospital staffing business. In addition, ATS Health Services has received certification by The Joint Commission under its Home Care Accreditation Program. Tim Jones, President of ATS Healthcare Services, has joined Crdentia's senior management team and will be responsible for overseeing the acquired operations. The integration process has already begun.
In keeping with Crdentia's strategy of focusing its operations in attractive Sun Belt markets, this acquisition increases the Company's revenue base by 35% and allows Crdentia greater penetration of the important markets throughout the Southeast region of the U.S. Crdentia believes the acquisition will 1) provide critical mass to the Company's overall operations, 2) significantly increase operating and EBITDA margins and 3) improve its ability to continue to attract large national and regional contracts to add to the newly combined businesses. The acquisition will also bring additional experienced leadership to Crdentia's growing management and recruitment teams.
"I am very pleased to announce Crdentia's acquisition of ATS Health Services," said Crdentia's Chief Executive Officer John Kaiser. "ATS Health Services is a well-run company operating in attractive markets with a strong reputation and an impressive customer base- all qualities we look for in potential acquisition targets. The southeastern U.S. has an attractive demographic makeup for our service offerings, and we are excited about this new acquisition, which immediately gives Crdentia a strong market share position and broad coverage throughout the southeastern market. In addition, the far greater presence throughout the Southeast region gained with this acquisition will allow Crdentia the ability to offer a much broader area of coverage for our Travel Nurse Division. Also, the Company gains a diversified customer mix including hospital-based nursing, allied healthcare, home healthcare nursing, upon which it will be able to add additional large regional and national contracts. I believe we can take the combined companies to the next level of growth while further establishing the Crdentia footprint in the Sun Belt region."
About Crdentia Corp.
Crdentia Corp., one of the nation's leading providers of healthcare staffing solutions, is focused on recruiting talented national and international healthcare professionals to meet the ever-increasing employment needs of over 1,500 clients. Crdentia is one of the few companies that can provide quality temporary staff for all healthcare industry positions including local nurses, travel nurses, allied health and locum tenens professionals. For more information, visit http://www.crdentia.com.
Forward Looking Statements
Statements contained in this release that are not historical facts are forward-looking statements that involve risks and uncertainties. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those discussed in "Risk Factors" in the Company's Forms 10-K, Forms 10-Q, and other filings with the Securities and Exchange Commission. Such risk factors include, but are not limited to, a limited operating history with no earnings; reliance on the Company's management team, members of which have other business interests; the ability to successfully implement the Company's business plan; the ability to continue as a going concern; the ability to fund the Company's business and acquisition strategy; the growth of the temporary healthcare professional staffing business; difficulty in managing operations of acquired businesses; uncertainty in government regulation of the healthcare industry; and the limited public market for the Company's common stock. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
Contact Crdentia Corp.
John Kaiser, CEO
Jim TerBeest, CFO
|SOURCE Crdentia Corp.|
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