Georgia to Be Headquarters if Tokos Medical Merger OKd

SANTA ANA — Tokos Medical Corp. and rival Healthdyne Inc. said Tuesday that the company formed by their proposed merger will be based in Marietta, Ga. The combined company will be named Matria Healthcare Inc.

The two obstetrical home care providers decided to set up headquarters in Marietta, Healthdyne’s home, to be closer to business destinations on the East Coast, said Robert F. Byrnes, chairman and chief executive of Santa Ana-based Tokos.

Tokos, which employs 350 to 400 people in Santa Ana, will retain “substantial” operations here, Byrnes said. He added, however, that he could not specify how many workers might be affected by the merger or the decision to base the company in Marietta.

Tokos and Healthdyne announced plans in October to combine their operations into a company that would have annual revenue of about $160 million. Both companies posted losses last year. Federal regulators and shareholders of both companies must approve the merger. Byrnes would become president and chief executive of the new company. Parker H. Petit, Healthdyne’s chairman and chief executive, would become chairman.