Abbey Healthcare Sells Subsidiary

Abbey Healthcare Group Inc. said Friday that it has completed the sale of its 51% interest in a pharmaceutical subsidiary to a Houston company for $20.5 million in cash.

The health care company’s sale of its stake in Abbey Pharmaceutical Services Inc. to Living Centers of America Inc., a long-term health care provider, also gives it warrants to purchase 250,000 shares of Living Centers stock at $35 a share.

Abbey Pharmaceutical, a distributor of pharmaceuticals to nursing homes, was created through a joint venture of Living Centers and Abbey Healthcare. Living Centers now is the sole owner.

Abbey Healthcare sold its interest in the pharmaceutical company because it wants to focus on its core business of providing home respiratory and infusion therapy, said Richard Rapp, Abbey’s chief financial officer.