HOUSTON and DALLAS, Sept. 13 /PRNewswire-FirstCall/ - Northstar Healthcare Inc., (TSX:NHC) ("Northstar") announced that it has signed a letter of intent to acquire an option to purchase a 60% interest in The Palladium for Surgery - Dallas, an ambulatory surgical center located at 5920 Forest Park Road in Dallas.
Northstar successfully completed acquisitions of a controlling interest in two other ambulatory surgery centers in Houston in May 2007. Northstar is headquartered in Houston and its common shares began trading on the Toronto Stock Exchange in May 2007.
The Palladium for Surgery - Dallas is a 17,500 square-foot ambulatory surgical center currently managed by Northstar. The Palladium for Surgery - Dallas is a multi-specialty ambulatory surgery center with three operating rooms and one treatment room for ENT, orthopedics, pain management, general surgery and podiatric surgery. Donald Kramer, Northstar's CEO, and certain other members of management currently own 100% of The Palladium for Surgery - Dallas. The letter of intent to acquire the option has been reviewed and approved by all of Northstar's independent directors.
"This agreement represents a great opportunity for us to expand Northstar's owned ASC operations, while minimizing our acquisition risk," said Dr. Donald Kramer, chief executive officer of Northstar. "Our executive team has been managing Palladium - Dallas for almost two years, so we know the center well and also have a strong understanding of its growth potential in the strong Dallas market."
Terms of the Option
The option will become exercisable one year following the date that at least five, and not more than 12, qualified physicians join The Palladium for Surgery - Dallas as limited partners, and will have a term of two years. The Palladium for Surgery - Dallas has agreed to use its best efforts to develop this core group of physician limited partners by the end of 2007.
The option values The Palladium for Surgery - Dallas at six times the annualized EBITA earned from the ambulatory surgical center owned by Palladium for Surgery-Dallas for the applicable period prior to the date of exercise. Upon an exercise of the option by Northstar, the current limited partners will be required to sell 100% of their partnership interests to Northstar. The balance of the partnership interests to be acquired by Northstar upon an exercise of the option will be sold by the physician limited partners of The Palladium for Surgery - Dallas, who will collectively hold the remaining 40% of the partnership interests following the acquisition. Issuance of the option is subject to the negotiation and execution of a mutually acceptable definitive option agreement.
For information on Northstar, please contact Jason Fisher, vice president of physician relations for Northstar Healthcare, at 281/840-5163 or visit http://www.northstar-healthcare.com.
About Northstar Healthcare Inc.
Northstar owns and/or manages ambulatory surgery centers in the United States, focusing initially on Houston and other metropolitan areas in Texas. The company currently holds interests in two ambulatory surgery centers in Houston - a 70 percent partnership interest in The Palladium for Surgery - Houston and a 60 percent partnership interest in Medical Ambulatory Surgical Suites. In addition, Northstar manages an ambulatory surgery center in Dallas and three pain management clinics in Houston.
Northstar was founded and sponsored by Donald Kramer, M.D., its chief executive officer, and Stewart A. Feldman. Mr. Feldman also served as the co-principal in and Chairman and Chief Executive Officer of Healthcare Ventures, Ltd., which sponsored Northstar, with Dr. Kramer serving as its President.
This press release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of Northstar Healthcare Inc. (the "Company") and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. These risks and uncertainties are discussed in the Company's regulatory filings available on the Company's web site at http://www.Northstar-Healthcare.com or at http://www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.
|SOURCE Northstar Healthcare Inc.|
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