News : Archives
Arcadia Resources Completes Acquisition of Minneapolis-Based PrairieStone Pharmacy
SOUTHFIELD, MI, February 20, 2007 -- Arcadia Resources, Inc. (AMEX: KAD), an innovator
in consumer health care services, announced today that it has completed its acquisition of PrairieStone Pharmacy, LLC, on February 16, 2007. PrairieStone is a Minneapolis-based retail pharmacy company which operates or is contracted to furnish management or other retail pharmacy services to approximately 200 retail pharmacies within grocery retailers located in the Central and Eastern United States.
“We are thrilled to complete the acquisition of PrairieStone,” said Arcadia Chairman and CEO John Elliott, II. “PrairieStone’s two core offerings, DailyMed™ and Licensed Pharmacy Services, are synergistic with Arcadia’s existing pharmacy operations and CareClinic division. Arcadia will integrate PrairieStone Pharmacy’s core services into our existing offerings, thus creating unique solutions in the home care and grocery services markets.”
“Arcadia’s growing footprint as a national provider of consumer-focused medical and wellness services is an ideal complement to PrairieStone’s pharmacy operations,”
said Marvin Richardson, President & CEO of PrairieStone. “We look forward to the continued growth and expansion of our business with the added resources of Arcadia.”
Combining PrairieStone’s Licensed Service Model with Arcadia’s CareClinics (in-store minor clinics) is expected to add additional value to the service offerings. CareClinic, combined with PrairieStone’s Automated Pharmacy footprint, will allow a grocer to place an efficient, complete "health care offering" within a same sized space typically earmarked only for pharmacy. Moreover, in addition to maximizing precious retail space, the health care offerings are anticipated to afford greater efficiencies for the grocer, due to a balanced workload between a pharmacist, a nurse and appropriate pharmacy technicians.
The acquisition is expected to be accretive in the fiscal years ending March 31, 2008 and March 31, 2009.
The consideration for the purchase was the issuance of 9,926,337 restricted shares of Arcadia common stock subject to registration rights, with additional shares of Arcadia common stock potentially issuable on the one-year anniversary date from closing (February 16, 2008), depending on Arcadia’s share price on that date.
Under terms of the acquisition, PrairieStone closed on the sale of its remaining in-store pharmacy assets to Lund Food Holdings, Inc. In doing so, PrairieStone completed its transition from an owner of these assets to an operator, manager and service provider to pharmacies, and entered into a five-year management agreement with the Minneapolis-based grocery retailer.
If PrairieStone achieves certain EBITDA targets during the two years following closing, the Arcadia agreement provides incentives for PrairieStone’s selling members to receive additional Arcadia shares or cash, at Arcadia’s election,
About PrairieStone Pharmacy, LLCFounded in 2003, PrairieStone Pharmacy is one of the nation’s fastest-growing retail pharmacy chains. Offering a unique model that relies on state-of-the-art technology and automation, the Company prides itself on placing its pharmacists closer to its customers as a way to offer exceptional customer service and care. With the launch of its patent-pending DailyMed solution, PrairieStone hopes to further extend its mission of improving retail pharmaceutical care. In 2005, PrairieStone Pharmacy was Drug Topics’ Chain of the Year, and Fast Company called PrairieStone, “The Starbucks of Pharmacies.” For more information about PrairieStone Pharmacy, visit www.PrairieStoneRx.com.
About Arcadia Resources
Arcadia Resources, Inc. is a national provider of alternate site health care services and products, including respiratory and durable medical equipment; non-medical and medical staffing, including travel nursing; a mail-order pharmacy; and catalog of healthcare-oriented products, also available for purchase on http://www.arcadiahomehealth.com and other leading retailer websites. Through industry partnerships, the Company is also establishing walk-in routine (non-emergency) medical clinics inside of retail stores. Arcadia's comprehensive solutions help organizations operate more effectively and with greater flexibility, while enabling individuals to manage illness and injury in the comfort of their own homes or through the convenience of local health care sites. For more information on the Company, visit our website: http://www.arcadiaresourcesinc.com.
Contact: Tracey Wolf of Arcadia Resources, Inc. at 239-434-8884 x 201.
Media: Andrew Frank at Kreab/Strategy XXI (212) 935-0210 or
Dan Fleshler at Kreab/Strategy XXI (212) 935-0210
Any statements contained in this release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21A of the Securities Exchange Act of 1934, as amended and otherwise within the meaning of court opinions construing such forward-looking statements. The Company claims all safe harbor and other legal protections provided to it by law for all of its forward-looking statements. Forward-looking statements involve known and unknown risks, estimates, uncertainties and other factors, which could cause actual financial or operating results, performances or achievements expressed or implied by such forward-looking statements not to occur or be realized, including our estimates of consumer demand for retail store health clinic services, required capital investment, build-out schedules, competition, and other factors. Actual results may differ materially from those anticipated or implied in the forward-looking statements, which speak only as of the date hereof. Additional information that could materially affect the Company may be found in the Company's filings with the Securities and Exchange Commission. The Company disclaims any obligation to update or alter its forward-looking statements, except as may be required by law.
