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Coram bought for $655M
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October 21, 1996: 11:14 a.m. ET
IHS offers $280M in stock, $375M in debt assumption
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NEW YORK - Integrated Health Services Inc. announced agreement Monday to buy Coram Healthcare Corp. for $655 million -- $280 million in stock and $375 million in debt assumption.
Integrated said the deal would create the country's second-largest home-health company, as well as the largest U.S. post-acute-care company offering services like home nursing.
Coram, which provides home intravenous therapy, has 112 locations in 43 states, brining in $532 million in annual revenues.
Under Monday's deal, investors will receive $5.50 of Integrated stock, or about 0.2111 shares, for every Coram share held.
Plans call for the deal to close in first-quarter 1997.
Once the transaction closes, Integrated will operate more than 700 home-health branch locations in 44 states, generating more than $1.2 billion in total annual revenues.
As part of Monday's deal, Integrated also reached tentative settlement of a lawsuit involving Coram's $309 million 1995 purchase of Caremark Inc.'s home-infusion business.
Coram and Caremark parent MedPartners Inc. wound up in court over the 1995 deal.
From staff and wire reports. 
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