SOURCE: Rural/Metro Corporation

Rural/Metro Corporation

March 08, 2010 10:00 ET

Rural/Metro to Expand Service in Northern Kentucky With Planned Acquisition of TransCare Ambulance Service

SCOTTSDALE, AZ--(Marketwire - March 8, 2010) -  Rural/Metro Corporation (NASDAQ: RURL), a leading national provider of ambulance and private fire protection services, announced today that one of its subsidiaries has entered into a definitive agreement to acquire TransCare of Kentucky, a leading regional provider of emergency and non-emergency ambulance services in Northern Kentucky, for an undisclosed price.

Conrad A. Conrad, interim President and Chief Executive Officer, said, "We have long held the belief that expansion through hospital-based ambulance services is a viable growth strategy that will serve us well in the future. We look forward to expanding our operations in northern Kentucky and to a seamless transition of service as we continue to provide the highest-quality patient care."

TransCare provides 24-hour advanced life support and basic life support ambulance services to and from hospitals, medical testing or treatment facilities and long-term care centers. Additionally, the company provides emergency ambulance services to a variety of municipalities in a four-county area that includes Kenton, Boone, Campbell and Grant counties. The operation is expected to contribute approximately $5.0 million in new net revenue annually.

Under terms of the agreement, Rural/Metro will acquire from TransCare of Kentucky substantially all of the assets of TransCare, excluding accounts receivable. TransCare is owned by St. Elizabeth Healthcare, which owns and operates six hospitals throughout Northern Kentucky. St. Elizabeth Healthcare has owned and operated TransCare for more than 12 years. The transaction is pending a 30-day wait period and approval from the Kentucky Office of Health Policy to transfer the Certificates of Need to Rural/Metro.

Bryan Gibson, Southern Group President, said, "This acquisition provides an excellent strategic platform for continued expansion within the Southern region and enables us to further leverage our experience and strengths as a leading national and regional provider of ambulance services."

Steve Blackburn, Division General Manager for Kentucky, added, "We look forward to a very smooth transition within the communities served and to further enhancing the regional system through the application of Rural/Metro's industry expertise and technology advancements. Patients and customers can expect a continuation of the top-level service they have grown accustomed to and a commitment on Rural/Metro's part to the effective and efficient management of these operations."

About Rural/Metro Corporation

Rural/Metro Corporation provides emergency and non-emergency ambulance services and private fire protection services in 20 states and approximately 400 communities throughout the United States. For more information, visit Rural/Metro Corporation's web site at www.ruralmetro.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "will," "believes," "seeks," "anticipates," "intends," "estimates," "expects," "projects," "plans," and similar expressions are intended to identify forward-looking statements. All statements that address events or developments that we expect or anticipate will occur in the future, including statements that describe the Company's business strategy, outlook, objectives, plans, intentions or goals are forward-looking statements. All such forward-looking statements and those presented elsewhere by the Company's management from time to time are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. See risks and uncertainties described in "Risk factors" included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2009, filed with the Securities and Exchange Commission ("SEC") on September 9, 2009. A copy of all SEC filings may be obtained from the SEC's EDGAR web site at www.sec.gov, or the Company's web site at www.ruralmetro.com

(RURL/G)

Contact Information

  • CONTACT:
    Liz Merritt
    Rural/Metro Corporation
    (480) 606-3337

    Sharrifah Al-Salem, FD
    (415) 293-4414