Critical Homecare Solutions Announces Signing of Definitive Merger Agreement With BioScrip, Inc. Critical Homecare Solutions

Critical Homecare Solutions (along with its subsidiaries, "CHS"), a Kohlberg & Company, LLC portfolio company, announced that it has entered a definitive merger agreement for the Company to be acquired by BioScrip, Inc. (NASDAQ:BIOS) in a transaction valued at approximately $358 million. Privately-owned CHS is a leading provider of home infusion therapy and nursing services, based in Conshohocken, Pennsylvania (see also Critical Homecare Solutions).

Founded in 2006 by President & CEO, Robert Cucuel, and Vice President and CFO, MJ Graves, as a platform to consolidate the home infusion industry, CHS is now one of the largest independent providers in the United States, with a total of 68 infusion and nursing locations. For the pro forma last twelve month period ended September 30, 2009, CHS generated revenues of approximately $252 million.

Mr. Cucuel and his management team of MJ Graves, Nitin Patel, Joey Ryan and Colleen Lederer have been consolidating homecare companies for the last 14 years and have integrated over 65 acquisitions during that time. Since its founding in 2006, CHS has acquired and integrated eleven acquisitions, making it a leading consolidator of independents in the sector.

Mr. Cucuel said, "Over the past three and half years, we have established CHS as an industry leading operator with a broad geographic footprint and favorable growth trends. CHS will add high value infusion therapies delivered across its national platform to BioScrip, thereby increasing the scale of the combined specialty pharmacy business. As part of BioScrip, we will be able to offer our payor relationships with a broader array of services inclusive of specialty mail order, community pharmacy locations, specialty pharmacy, and pharmacy benefit management."

Pursuant to the terms of the agreement, BioScrip will acquire all of the outstanding capital stock of CHS for $358 million in cash, stock, debt and warrants. After the transaction, Kohlberg & Company designees will assume two seats on BioScrip's Board of Directors. The transaction is expected to be close by March 31, 2010.

Gordon Woodward, Partner with Kohlberg & Company, added, "It has been a great pleasure to work with Bob Cucuel, MJ Graves and the CHS team in the founding and successful growth of the Company since 2006. CHS has built a unique and enviable industry-leading business, and this transaction is a credit to the CHS team in realizing their strategic goals for the Company. Going forward, we will continue to be actively involved with BioScrip, both as shareholders and board members, and look forward to helping the combined company capitalize on its myriad opportunities for growth and expansion across its various service offerings."