American Shared Hospital Services (ASHS), a provider of technology solutions for cancer treatment, has agreed to acquire a majority stake of 60% in three radiation therapy cancer centres in Rhode Island.
Under the deal, ASHS will buy a majority stake in Southern New England Regional Cancer Center and Roger Williams Radiation Therapy, which operates these centres, along with some payor contracts, from GenesisCare USA.
These centres are said to be equipped with advanced technology for cancer treatment.
The deal, valued at $2.85m, is part of GenesisCare’s Chapter 11 bankruptcy process.
Each of ProspectCharterCARE, LLC d/b/a Roger Williams Medical Center and Care New England have 20% ownership in the target companies.
Completion of the deal is expected in the next 60 days, contingent on bankruptcy court approval, the parties reaching a consent agreement with the Rhode Island Department of Health, and other customary closing conditions.
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Through this acquisition, ASHS aims to expand its US footprint.
ASHS executive chairman Ray Stachowiak said: “This is a milestone agreement for our Company that, upon closing, would expand our footprint of owned and operated radiation oncology centres into the US.
“If consummated, the transaction would add three new revenue streams that we expect would be accretive to our base, and we believe, is an effective use of our capital.
“Most importantly, our ownership would preserve the offering of radiation therapy services at the Landmark, Roger Williams and Maddock Centers and will ensure that patients have continued access to high-quality radiation therapy both for those under treatment today, and for those who will require treatment in the future.”