Rural/Metro completes sale to Envision Healthcare for $620M








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Oct 29, 2015, 3:30pm MST Updated Oct 30, 2015, Mark Harden News Director  Denver Business Journal

Colorado’s Envision Healthcare Holdings Inc. has completed its $620 million acquisition of Scottsdale-based Rural/Metro Corp., an ambulance service operating in 21 states.

Greenwood Village, Colorado-based Envision (NYSE: EVHC) said the acquisition,plans for which were announced in July, will bolster the company’s medical transportation unit, American Medical Response (AMR).

Privately held Rural/Metro Corp. is expected to generate $590 million in revenue, Envision said. It said it expects to save some $25 to $28 million through 2017 in efficiencies following the tie-up.

“The addition of Rural/Metro allows us to more rapidly expand Envision’s mobile integrated healthcare delivery offering,” said William Sanger, Envision’s chairman, president and CEO, in a statement Wednesday. “We are focused on working with our healthcare partners to build a more sustainable model that is centered on patient needs, with paramedics and EMTs playing an important role.”

Rural/Metro had been struggling for years in the Phoenix area, particularly as local cities expressed concern with the company’s response times.The sale of the company was announced in July.

Despite its issues, less than a month before the sale, Rural/Metro announced it was looking to hire 1,000 people nationally, including 100 in Phoenix.

Envision’s AMR recently had made moves to compete with Rural/Metro by offering ambulance service in the Phoenix area, and in January was given final approval to do so by an Arizona official over objections from Rural/Metro.

Rural/Metro also provides specialty fire protection services in some areas.

In addition to AMR, other major Envision units are EmCare Holdings Inc., a physician-services business; and Evolution Health, which provides care to patients with advanced illnesses and chronic diseases.

In January, EmCare announced a deal to buy Vista Staffing Solutions Inc., the physician staffing business of On Assignment Inc., for $123 million, as well as a pair of emergency physician groups in New Jersey and Arizona for a combined $380 million.

Mark Harden directs print and digital news content for the Denver Business Journal, contributes to the “17th & Lincoln” blog and compiles the daily “Afternoon Edition” email. Email: Phone: 303-803-9227.



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