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BioScrip will buy drug infusion company for $223M

NEW YORK (AP) -- BioScrip Inc. plans to expand its drug infusion business with a $223 million acquisition of CarePoint, which administers drugs to patients in their homes and other locations outside of hospitals.

BioScrip, of Elmsford, N.Y., provides medication infusion services such as IVs and administers prescription drug benefits. CarePoint Partners, based in Cincinnati, provides infusion services at patients' homes and at walk-in locations so patients do not have to go to hospitals for treatment.

CarePoint sees about 20,500 patients per year. BioScrip said it will provide home infusion services to about 100,000 U.S. patients after acquiring CarePoint. BioScrip expects about $160 million in annual revenue from CarePoint, while BioScrip posted $663 million in revenue in 2012.

Shares of BioScrip rose 96 cents, or 6.4 percent, to $15.96 in afternoon trading. Earlier Monday the stock reached an 11-year high of $16.16. Shares have gained 39 percent in 2013 and have more than doubled in value over the last year.

BioScrip expects a $45 million tax benefit related to the deal, which would reduce BioScrip's acquisition costs to $178 million. The deal is expected to close during the third quarter.

The company said it is modifying its credit financing so it can refinance its debt and acquire CarePoint. As part of that change, BioScrip is extending an offer to buy back senior notes due in 2015 to July 8. The offer had been scheduled to expire June 28.