Gentiva Health Services sells respiratory/HME and infusion therapy businesses to Lincare Holdings subsidiary

Feb 5 2010

Gentiva Health Services, Inc. (Nasdaq: GTIV), a leading provider of comprehensive home health services, announced today that it has sold its businesses providing respiratory therapy and home medical equipment, and infusion therapy to a subsidiary of Lincare Holdings Inc. (Nasdaq: LNCR) in an all-cash transaction.  Terms were not disclosed.

Included in the transaction are approximately forty locations in seven states providing respiratory/HME and/or infusion therapy.  The businesses generated revenue of approximately $55 million for the trailing twelve months ended September 27, 2009.  The sale of these operations by Gentiva is consistent with a series of divestitures of non-core assets, including the sale of (i) a majority interest in the ancillary care benefit management services provider CareCentrix in the third quarter of 2008; and (ii) branch offices specializing in pediatric and adult private duty services in March 2009.  Moving forward, Gentiva's business will consist primarily of home health and hospice services targeted to the senior population.

"The transaction continues our efforts to focus Gentiva on our core expertise in providing in-home geriatric care services," said Gentiva CEO and President Tony Strange.  "By simplifying our business, we are able to direct our resources on internal and external growth initiatives in home health and hospice, including the continuing roll-out of our industry leading specialty care programs and the completion of strategic acquisitions.  We wish everyone in the respiratory/HME and infusion businesses the best for the future and thank them for their contributions to Gentiva."

The financial results of the respiratory therapy and home medical equipment and infusion therapy businesses are expected to be reported as discontinued operations in Gentiva's consolidated financial statements for the year ended January 3, 2010.  The Company anticipates that such discontinued operations will reflect a small operating loss for fiscal year 2009, exclusive of any special items or asset impairment charges.  Gentiva will release its fourth quarter and full-year 2009 financial results, announce its 2010 financial outlook and host its quarterly earnings conference call on February 18, 2010.