Sun Healthcare sells rehabilitation businesses to Beverly
Sun Healthcare Group has announced its intention to sell its rehabilitation businesses to Beverly Enterprises' subsidiary Aegis Therapies for $34 million. The deal is expected to close at the end of January, pending approvals by Beverly's board of directors.
Irvine, CA-based Sun emerged from bankruptcy February 2002. In its ongoing restructuring efforts since, the company has sold more than 100 underperforming skilled nursing and other long-term care facilities. The company also shed its pharmaceutical business in July and its software development operations in November. Sun currently operates 116 facilities.
To the contrary, Fort Smith, AR-based Beverly has stated its intention to grow its service business, to gain higher margins. Aegis Therapies recorded about $235 million in revenues in 2003. The company also runs 378 skilled nursing facilities, 21 assisted living centers and 23 hospice and home-care centers.