June 19, 1998
AMERIPATH, INC. ANNOUNCES FIVE ACQUISITIONS
Riviera Beach, FL, June 19, 1998 - AmeriPath, Inc. (Nasdaq:
PATH), a physician practice management company focused
on anatomic pathology services, announced today that
it has completed the acquisition of four anatomic pathology
practices and has entered into a definitive agreement
to acquire an additional anatomic pathology practice.
These practices which are located in Florida, Texas and
Mississippi, had aggregate revenues of approximately
$10 million in 1997 and add 14 pathologists to bring
AmeriPath's total to 166 pathologists. Terms of the transactions
were not disclosed.
The four completed acquisitions include Indian River
Pathology (FL), Southwest Pathology Associates (TX),
Plains Pathology Associates, P.A. (TX), and R.M.C. Pathology
Associates, P.C. (MS).
Indian River Pathology, an anatomic pathology practice
in Vero Beach, Florida, provides inpatient and outpatient
services at Indian River Memorial Hospital. Dr. John
Rodgers, one of three board-certified pathologists at
Indian River Pathology, founded the practice in 1979.
Throughout the group's history, the practice has developed
a strong reputation not only within the inpatient hospital
community but also through a sizeable outpatient physician
referral base. Indian River Pathology should further
enhance AmeriPath's presence in Florida with an established
practice on the East Coast of Florida.
Southwest Pathology Associates and Plains Pathology
Associates are both large hospital-based anatomic pathology
practices located in Lubbock, Texas. St. Mary's Hospital
and Methodist Hospital, the two hospitals to which these
practices primarily provide pathology services, have
agreed to a merger of the two hospitals. As part of their
transaction with AmeriPath, Southwest Pathology and Plains
Pathology have agreed to merge their practices in an
effort to better service the needs of the hospitals and
the region. In addition to the two hospitals mentioned
above, the two pathology practices presently provide
pathology services to 49 outpatient clinics, seven rural
hospitals and a national clinical laboratory. This is
AmeriPath's fifth acquisition in Texas increasing the
company's number of pathologists to 31 within the state.
R.M.C. Pathology Associates is an anatomic pathology
practice in Jackson,Mississippi. The practice provides
anatomic and clinical pathology services for inpatient
and outpatient procedures at River Oaks Hospital, a part
of the HMA hospital system. The acquisition will compliment
the presence already established by AmeriPath in the
Mississippi market.
In addition, AmeriPath has entered into a definitive
agreement to acquire Pasadena Pathology, a pathology
practice located at Palms of Pasadena Hospital in St.
Petersburg, Florida. This practice employs three board-certified
pathologists. Dr. Thomas Barton, who has been with Pasadena
Pathology since 1987, presides as the hospital's Chief
of Staff. When completed, this acquisition will strengthen
AmeriPath's presence in the Tampa Bay market. AmeriPath
management anticipates that the transaction will close,
however, the acquisition is subject to certain conditions
and there can be no assurance that these conditions will
be satisfied or that the acquisition will be consummated.
"The addition of these pathology practices provides
great momentum for AmeriPath's growth and development," said
James New, President and CEO of AmeriPath. "These strategic
acquisitions greatly enhance our leadership positioning
in the Florida, Texas and Mississippi markets. Our strategy
of partnering with and cultivating our local pathology
practices in attractive markets allows us to bring together
the synergy of quality service, cost savings, consolidation
opportunities and regional distribution services."
AmeriPath, Inc. is the nation's leading physician practice
management company focused on providing anatomic pathology
services to physicians, hospitals, national clinical
laboratories and managed care organizations. The company
presently operates in nine states and provides medical
services through outpatient pathology laboratories, hospital
inpatient laboratories and outpatient surgery centers.
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This release contains certain forward-looking statements
regarding AmeriPath, including its operations and prospects.
Past performance is not necessarily indicative of future
results. In addition, AmeriPath's actual results could
differ materially from the results anticipated in these
forward-looking statements as a result of uncertainties,
including risks relating to demand, pricing, government
regulation, payments and reimbursements, dependence upon
contracts and pathologists, acquisitions, integration
of acquired practices, the market for pathology services,
competition, and other factors identified in AmeriPath's
Form 10-K Annual Report as filed with the Securities
and Exchange Commission.
