SOURCE: Rural/Metro Corporation

Rural/Metro Corporation

September 21, 2010 16:00 ET

Rural/Metro to Acquire Pridemark Paramedic Services

Strategic Expansion in Denver Market to Provide $12.0 Million in New Revenue

SCOTTSDALE, AZ--(Marketwire - September 21, 2010) -  Rural/Metro Corporation (NASDAQ: RURL), a leading national provider of ambulance and private fire protection services, announced today that it has entered into a definitive agreement to acquire the assets of Pridemark Paramedic Services in metro-Denver and Boulder, Colorado.

Michael P. DiMino, President and Chief Executive Officer, said, "Today we welcome a tremendous group of dedicated employees to the Rural/Metro team and look forward to the continued operation of highly effective patient care systems.

"Our acquisition of Pridemark's operations represents an exceptional and logical opportunity for strategic expansion in a contiguous operating market," Mr. DiMino continued. "We are very excited to execute on this component of our growth model and look forward to exploring similar opportunities in the future."

Pridemark provides 24-hour advanced life support and basic life support ambulance services under 911 contracts in Boulder, Arvada, Edgewater, Fairmount and Wheat Ridge, Colorado. The Company also provides non-emergency ambulance services to healthcare facilities throughout metro Denver and Boulder County.

Mark Sanko, Pridemark Board Member, said, "On behalf of the Pridemark Board of Directors, we are very pleased to partner with Rural/Metro in this transaction and are comforted in knowing that our employees will be working for the finest ambulance company in the nation."

Mike Donner, Pridemark President and Co-Founder, added, "We are very much looking forward to the integration of our services with Rural/Metro's operations in Colorado, and we are especially pleased to join an organization that places a priority on clinical care excellence and exceptional customer service."

The Company estimates the acquisition will contribute $12.0 million in net new ambulance revenue and approximately 38,000 transports per year. The transaction is expected to close within 30 days for an undisclosed sale price. 

"Through the integration of our current business in Aurora and metro-Denver and the Pridemark operations in neighboring Boulder County, we will standardize billing and technology systems, leverage operating practices and efficiencies, and drive the brand excellence that Rural/Metro customers have come to know," Mr. DiMino said. "We fully expect the end result will be a fully accretive transaction on an EBITDA basis that will drive long-term value for our shareholders."

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