Cross Country Healthcare Completes Acquisition of Advantage RN & Reaffirms Second Quarter 2017 Guidance | Business Wire

BOCA RATON, Fla.–(BUSINESS WIRE)–Cross Country healthcare, Inc. (NASDAQ:CCRN) (“Company” or “Cross

Country”), a leading provider of healthcare staffing and workforce

solutions, announced today that it's completed the acquisition of

Advantage RN, LLC and its subsidiaries (collectively, “Advantage”),

effective July 1, 2017. This acquisition provides Cross Country with

another well-respected brand and go-to-market approach. Also

increases the supply of healthcare professionals to support Cross

Country’s diverse customer base, most notably its many Managed Service

Provider programs. Cross Country expects the transaction to result in

meaningful earnings accretion in 2017 through increased scale and

accelerated growth opportunities.

William J. Grubbs, President and Chief Executive Officer of Cross

Country Healthcare stated, “We welcome Advantage RN to the Cross Country

family. Our companies are a great match with complementary capabilities

to better serve all of our customers. Together, we're better positioned

to pursue our collective strategy for market expansion, revenue growth

and enhanced shareholder value.”

“Advantage RN has enjoyed a long and successful working relationship

with Cross Country. Our cultures and goals are closely aligned – to

deliver quality services to our customers, create more opportunities for

our candidates, provide a great working environment for our employees,

and ultimately, better patient care,” said Matthew R. Price, President

and CEO of Advantage RN. “While we retain the Advantage RN name and the

recognition it carries in the industry, we now boast a new identity as

part of the Cross Country family and the bright future we'll build

together.”

Cross Country acquired substantially all of the assets of Advantage for

a total purchase price of $88 million, which is subject to a final net

working capital adjustment. At closing, the Company paid $86.8 million,

net of cash acquired, using $19.9 million in available cash and $66.9

million in borrowing under its Credit Facility, including a $40 million

incremental term loan. The amount paid at closing was subject to an

initial net working capital adjustment of $0.6 million. An

additional $0.6 million was deferred and is due to the seller within 20

months, less any COBRA and healthcare expenses incurred by Cross Country

on behalf of the former sellers. Based on the total net leverage ratio,

the combined interest rate at close is expected to be 3.5%.

Reaffirms Second Quarter 2017 Guidance

 

 

 

Q2 2017 Range

 

Revenue

$207 million –. $212 million

 

Gross profit margin

26.0% –. 26.5%

 

Adjusted EBITDA

$8 million –. $9 million

 

Adjusted EPS

$0.08 –. $0.10

Cross Country Healthcare, Inc.
William J. Grubbs, 561-237-6202
President and Chief Executive Officer
wgrubbs@crosscountry.com