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By MEREDITH BONNER
Staff Builders (Lake Success, NY) has decided to spin off its home healthcare business from its staffing operations to create a separate, publicly traded home care company.
The split, said Staff Builders’ CIO/COO Dale Clift, will allow both companies to focus on their particular industries.
"We think we have done some good things with both businesses," he said, "and we think we are positioned well for our home care business." The company’s Tender Loving Care Health Care Services (TLC) unit, which owns all of Staff Builders’ home care business, accounted for about 75% of FY98 revenues, Clift told HHBR.
To complete the spin off, Staff Builders will distribute each of its shareholders shares of its (TLC) unit. For every two Staff Builders share owned as of a certain date, which hasn’t yet been determined, the shareholder will receive one share of TLC, Clift said. Staff Builders expects to complete the spin off at the end of 1Q99 or early in 2Q99. The company’s supplemental staffing business will remain with Staff Builders. The completion of the spin off is subject to Staff Builders obtaining certain regulatory approvals and separate bank financing for both Staff Builders and Tender Loving Care.
Clift said the split will not change day-to-day operations of the company, since "it is run pretty much separately now." There will be two management teams, he said, except for Chairman/CEO Stephen Savitsky, who, after the spin off, will become chairman/CEO of both companies. Clift will be president/COO/CFO of TLC, and David Savitsky will be president/COO of Staff Builders.
Following the spin off, Staff Builders said, it expects Tender Loving Care’s stock to list on the over-the-counter bulletin board. Staff Builders’ stock was delisted from Nasdaq’s National Market in late January, and it has since been trading on the bulletin board.