Laidlaw Selling American Medical Response

[CAL/AAEM News Service]

Laidlaw Selling American Medical Response

By Mannie Garza

August, 2004


According to a story in The Deal, Laidlaw International put American Medical Response
(AMR), the nation's largest ambulance company, on the auction block in August. Laidlaw is
also auctioning off EmCare, its emergency physician practice group. 

A high-end business newsletter, The Deal, reported Aug. 19 that "top-tier private equity
firms including Bain Capital LLC, Cypress Group, Carlyle Group and Thomas H. Lee Partners
LP placed first-round bids for the companies in early August. Second round bids are
expected in September." Morgan Stanley is running the auction.

Lauren Sides, AMR vice president for corporate communications, had no comment, and
Laidlaw did not return calls seeking comment.

The Deal speculated that Laidlaw could reap between $720 million and $920 million from
the combined sale of AMR and EmCare. Laidlaw purchased AMR in 1996 for $1.1 billion and
paid $400 million for EmCare a year later. 

The newsletter also reported that Laidlaw's most recent Security and Exchange Commission
filing indicates that William A. Sanger, chief executive officer of both AMR and EmCare,
will receive a bonus equal to 5% of the enterprise value of AMR in excess of $410 million
and 5% of the enterprise value of EmCare above $125 million if Laidlaw sells those
companies.

Laidlaw's most recent quarterly report shows AMR's revenues rose to $265.6 million in the
third quarter of 2004 from $259.8 million in the third quarter of 2003. AMR brought in
$790 million in the nine months ending May 31 compared to $759.3 million in the nine
months ending May 31, 2003. 


Source: EMED-L -- a list for emergency medicine practitioners.
[mailto:EMED-L at ITSSRV1.UCSF.EDU] on Behalf of Michael Shapiro


=====
Cyrus Shahpar & Brian Potts 
Managing Editors, CAL/AAEM News Service 
UC-Irvine



	
		
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