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INDUSTRY NOTES

Caremark Buys Supplier of Services to Hemophiliacs

March 04, 1986|GREG LUCAS

In its third major acquisition in slightly over a year, Caremark, a Newport Beach-based supplier of home health care, has purchased Western Medical Specialties Inc., a San Bernardino company that supplies home-care products and medical services to hemophiliacs. Western Medical's projected net income for 1986 is $500,000.

The acquisition, for an undisclosed amount of Caremark stock, was a "win-win" situation for both companies, according to Lawrence A. Watts, a Caremark spokesman.

"From Western Medical's point of view," Watts said, "they were serving patients in only 25 states and now, joining us, they can go national. For Caremark, it's a logical extension of our core business."

While one health-care analyst placed the acquisition cost at "less than Western Medical's projected fiscal 1986 revenue"--estimated by Western Medical at $13 million--Watts said only that the deal "involved less than 500,000 shares of Caremark stock." Caremark closed at $17.25 a share in over-the-counter trading Monday, down 12 1/2 cents.

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