LONG BEACH, Calif.--(BUSINESS WIRE)-- Molina Healthcare, Inc. (NYSE: MOH) today announced that it has entered into a definitive agreement to acquire Abri Health Plan, a provider of Medicaid managed care services to BadgerCare Plus and SSI Managed Care enrollees in Wisconsin. The purchase price for the acquisition is expected to be approximately $16 million, subject to adjustments, and will be funded with available cash and/or the Company’s credit facility. Subject to regulatory approvals and the satisfaction of other closing conditions, the closing of the transaction is expected to occur by August 31, 2010.
“We are excited about this opportunity to partner with both the State of Wisconsin and the local provider community,” said J. Mario Molina, M.D., president and chief executive officer of Molina Healthcare, Inc. “Once this transaction closes, our company will provide health plan services in ten Medicaid markets throughout the country, we will be further diversified, and our Wisconsin health plan will have significant potential for future growth. Molina Healthcare is dedicated to providing quality patient care while supporting the crucial doctor-patient relationship.”
Abri Health Plan currently serves Medicaid beneficiaries in 23 counties in Wisconsin. In April 2010, Abri received a notice of intent to award a new contract to provide Medicaid managed care services to BadgerCare Plus enrollees in Wisconsin’s southeast region (Kenosha, Milwaukee, Ozaukee, Racine, Washington, and Waukesha counties), to be implemented between September 1 and November 1, 2010. Abri anticipates that its membership will grow as a result of this new contract.
About Molina Healthcare
Molina Healthcare, Inc. and its health plan subsidiaries provide managed care services to persons eligible for Medicaid, Medicare, and other government-sponsored programs for low-income families and individuals. Molina Healthcare’s licensed health plan subsidiaries in California, Florida, Michigan, Missouri, New Mexico, Ohio, Texas, Utah, and Washington currently serve approximately 1.5 million members. Molina Healthcare also offers health information management and business process outsourcing solutions for state Medicaid programs through its subsidiary, Molina Medicaid Solutions. More information about Molina Healthcare can be obtained at www.molinahealthcare.com.
Cautionary Statement under the Private Securities Litigation Reform Act: This press release contains “forward-looking statements” that are subject to risks and uncertainties that may cause actual results to differ materially. Such factors include risks related to the timely closing of the acquisition, including the need to obtain regulatory approvals and to satisfy other closing conditions, risks related to the integration of the operations and employees of Abri Health Plan, and risks related to the potential growth of Abri membership. A discussion of the risk factors facing our Company can be found in our annual report on Form 10-K for the year ended December 31, 2009, in our quarterly report on Form 10-Q for the quarter ended March 31, 2010, in our Form 8-K current reports, and in our other reports and filings with the Securities and Exchange Commission. These reports can be accessed under the investor relations tab of our Company website or on the SEC’s website at www.sec.gov. No assurances can be given that any of the events anticipated by the forward-looking statements in this release will occur. All forward-looking statements represent our judgment as of July 12, 2010, and we disclaim any obligation to update such statements.
Molina Healthcare, Inc.
Juan José Orellana, 562-435-3666
Kathleen O’Guin, 562-951-8305
KEYWORDS: United States North America California Wisconsin
INDUSTRY KEYWORDS: Health Hospitals Pharmaceutical Other Health Professional Services Insurance General Health Managed Care