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U.S. Renal Care Inc. and Dialysis Corporation of America (DCAI) Ink Deal to Combine Operations and Maximize Patient, Employee, Shareholder Value

Privately held U.S. Renal Care Inc. (USRC), a leading provider of outpatient dialysis services, recently announced it has entered into a definitive merger agreement to acquire Dialysis Corporation of America (DCA), a leading provider of outpatient kidney dialysis centers.

Through a subsidiary, USRC will commence a tender offer for all of the outstanding common shares of DCA for $11.25 per share in cash, representing a premium of about 72% over recent trading prices. USRC will also acquire all remaining outstanding DCA shares at the tender offer price; the transaction has an aggregate value of approximately $112 million.

Both companies are engaged in partnerships with nephrologists and share the same desire to improve patient and shareholder value.

“USRC and DCA have a shared vision that is focused on providing outstanding dialysis services to patients with end stage renal disease,” Chris Brengard, chairman and CEO of USRC stated in the press release. ”USRC and DCA each have built strong regional operations and this transaction permits us to build a more efficient and stronger national operation. DCA, like USRC, has a commitment to building joint ventures with nephrologists. We are excited about the possibilities going forward with DCA, and believe that our combined operations will result in continued quality improvement for our patients and value for our stakeholders.”

Thomas K. Langbein, chairman of the board of DCA, agrees, noting that the transaction will also benefit both companies’ physicians, patients, and employees.

At the close of the agreement, USRC will provide dialysis services to approximately 5,500 patients through 84 outpatient dialysis facilities across nine states, more than 12 home dialysis programs, and 24 dialysis programs within acute and specialty hospital facilities. The combination of the two companies is expected to collectively improve patient care without sacrificing either company’s culture.

“Combining DCA and USRC creates a stronger enterprise while preserving the cultures of the two companies which focus on quality patient care in partnership with top shelf physicians,” Stephen Everett, president and CEO of DCA stated.

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