Safeguard Ready for New Managed-Care Purchase

Safeguard Health Enterprises Inc. said Friday that it has completed its acquisition of a Dallas-based managed care company, and is planning another purchase.

“Ideally, we’d like to see at least one more in the works by the end of the year,” said John Cox, chief operating officer of the Anaheim-based health maintenance company.

Safeguard is combing the Sunbelt for additional targets, he said. Cox, who’s reviewing a number of candidates, said: “These things take time to pull together. You’re dealing with a highly fragmented industry, and a lot of entrepreneurs.”

The company completed the purchase of its former Dallas competitor in the managed dental care industry, First American Dental Benefits Inc. Safeguard paid about $23.5 million in cash and bank debt.

The acquisition, which adds about 175,000 members, will increase Safeguard’s total membership to about 1 million, said officials. It will also increase its annual revenue by about $12 million to about $100 million, they said.