Integrated Health Services of Owings Mills yesterday announced plans to acquire Standish Care Co. for $17 million and merge it into IHS' assisted-living division.
The agreement is subject to approval by the boards of both companies and by shareholders of Standish, who would receive $5 a share in the transaction. There are about 3.4 million shares outstanding.
Standish, based in Burlington, Mass., develops and manages assisted-living facilities, in which elderly residents are provided some help, but less than in a nursing home.
"Our interest here is to expand our assisted-living operations and achieve some economies of scale," said Marc B. Levin, senior vice president of IHS.
"We are also considering other acquisitions in assisted living," he said.
Standish would bring another 900 assisted-living beds to the 1,500 that IHS currently operates in 12 facilities, Mr. Levin said.
Standish is operating or developing facilities in eight states from Florida to New Hampshire. It is the developer for Woodholme Commons in Pikesville, which is planned for 65 units with 80 residents.
The project has received zoning approval and is now in the financing stage, said Michael J. Doyle, Standish's chairman and CEO.
IHS, with revenues this year expected to top $1 billion, has been growing through acquisitions. As recently as 1992, revenues were less than $200 million.
In 1993, it doubled in size, largely through the $180 million acquisition of Central Park Lodges, a firm that included nursing homes, drug companies and home health services. For 1994, IHS reported a profit of $30.9 million.
It operates a range of health services short of hospitalization at 500 locations in 30 states, including home care, rehabilitation, respiratory therapy, hospice care and "subacute" care, a level of service less intensive than a hospital but more than a nursing home.
Standish stock closed yesterday 50 cents higher, at $4.25 a share, a 52-week high. The company has reported losses in 14 of the last 15 quarters.
In 1994, it lost $4.2 million on revenues of $6.7 million.
IHS stock closed at $24.25, down 37.5 cents.