BASKING RIDGE, N.J., Oct. 11 /PRNewswire-FirstCall/ -- Hooper Holmes (Amex: HH) today announced the sale of Medicals Direct Group, the Company's subsidiary in the United Kingdom, to Brandgold Ltd., a management buyout group organized by Michael Benton, CEO of Medicals Direct. The purchase price was $15.25 million.
Following the terms of the transaction, $14 million (less closing adjustments of approximately $1.2 million), was paid to Hooper Holmes when the sale closed on October 9. Terms specify additional payments to Hooper Holmes of $500,000 within nine months of the closing and $750,000 within 24 months. All payments are in U.S. dollars.
"Divesting Medicals Direct is an important strategic step that will strengthen our balance sheet and enable us to invest in our most strategic businesses," said James Calver, President and CEO of Hooper Holmes.
Hooper Holmes announced the planned sale of Medicals Direct on August 9, 2007. The decision to sell was based on several factors, including the subsidiary's limited ability to significantly contribute to the long-term strategic goals of the Company. The company expects to record a net gain of approximately $10 million in connection with the transaction.
About Hooper Holmes
Hooper Holmes is the leader in collecting personal health data and transforming it into useful information, enabling customers to take actions that manage or reduce their risks and expenses. As the leading provider of risk assessment services for the insurance industry, Hooper Holmes provides insurers with the widest range of medical exam, data collection, laboratory testing and underwriting services in the industry.
With presence in over 250 markets and a network of more
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