================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------------ FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 January 7, 2002 Date of Report (Date of earliest event reported) GENTIVA HEALTH SERVICES, INC. (Exact name of registrant as specified in its charter) Delaware 1-15669 36-433-5801 (State or other jurisdiction of (Commission file number) (I.R.S. Employer incorporation or organization) Identification No.) 3 Huntington Quadrangle 2S, Melville, New York 11747-8943 (Address of principal executive offices) (631) 501-7000 (Registrant's telephone number, including area code) Not Applicable (Former name or former address, if changed since last report) ================================================================================ Item 5. Other events. On January 2, 2002, Gentiva Health Services, Inc. ("Gentiva") announced it had entered into a definitive agreement with Accredo Health, Incorporated to sell the assets and business of Gentiva's specialty pharmaceutical services for $415 million in cash and stock consideration, subject to certain conditions. The consideration will be subject to certain adjustments based on the closing net book value for the specialty pharmaceutical services business. The actual number of shares of stock consideration will be determined by dividing the amount of stock consideration by the twenty-day average trading price of Accredo Health stock prior to closing, unless such trading price is less than $31 or more than $41, in which case the average trading price will be deemed to be $31 or $41, as applicable, for purposes of the calculation. On January 2, 2002 Gentiva issued the press release attached as Exhibit 99 hereto and incorporated by reference herein. Item 7. Exhibits. (c) Exhibits. The following exhibit is filed herewith: Exhibit No. Description (99) Press Release dated January 2, 2002 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: January 7, 2002 GENTIVA HEALTH SERVICES, INC. By: /s/ Patricia C. Ma -------------------------------------------- Patricia C. Ma Senior Vice President, General Counsel and Secretary
Exhibit 99 -------------------------------------------------------------------------------- Press Release Contact: Michael Johns Vice President, Communications Gentiva Health Services 3 Huntington Quadrangle, 2S Melville, NY 11747 (631) 501-7442 michael.johns@gentiva.com Investor Contact: John J. Collura Executive Vice President, Chief Financial Officer and Treasurer Gentiva Health Services (631) 501-7437 FOR IMMEDIATE RELEASE Gentiva Health Services Announces Agreement to Sell its Specialty Pharmaceutical Services Business Melville, N.Y., January 2, 2002 -- Gentiva Health Services (Nasdaq: GTIV), the nation's leading provider of home health care and specialty pharmaceutical services, today announced that it has entered into a definitive agreement with Accredo Health, Inc. (Nasdaq: ACDO) to sell the assets and business of Gentiva's specialty pharmaceutical services for approximately $415 million in cash and stock consideration, subject to certain conditions. The board of directors for each of the companies has approved the proposed transaction. The transaction remains subject to both companies' shareholder approval and regulatory approvals. Subject to the satisfaction of these conditions, the transaction is estimated to close in April 2002. The consideration to be paid by Accredo for Gentiva's specialty pharmaceutical net assets will be 50 percent in Accredo common stock and 50 percent in cash. Gentiva currently intends that substantially all of the proceeds will be distributed to Gentiva shareholders shortly following the closing of the transaction. Further information on the transaction will be provided in shareholder proxies from the companies, which are anticipated to be delivered to shareholders in the first quarter of 2002. "The aligning of Gentiva's specialty pharmaceutical services business with Accredo creates a specialty pharmaceutical distribution capability with tremendous future opportunities," said Edward A. Bleechschmidt, Gentiva's chairman, president and chief executive officer. "At the same time, this transaction creates enhanced focus on our core home health business, where we maintain our industry leadership position as the only true national provider." After consummation of the transaction and following the distribution of proceeds, Gentiva will have no debt and a cash balance of $60 million to $80 million. Revenue from Gentiva's continuing home health operations for 2001 is expected to be approximately $720 million. Gentiva will provide further details regarding this agreement on a conference call scheduled for tomorrow, January 3, 2002, at 11:00 a.m. Eastern Standard Time. To participate in the call from the United States or Canada, phone (888) 276-9995. To participate in the call from outside the United States or Canada, phone (612) 288-0329. Gentiva Health Services (Nasdaq: GTIV), a Fortune 1000 company, is the nation's leading provider of home health care and specialty pharmaceutical services. With more than 300 locations in the United States, the company had approximately $1.5 billion in 2000 net revenues. For more information, visit Gentiva's Web site, "http://www.gentiva.com". --end-- Information contained in this news release, other than historical information, should be considered forward-looking, and is subject to various risk factors and uncertainties. For instance, the company's strategies and operations involve risks of competition, changing market conditions, changes in laws and regulations affecting its industries and numerous other factors discussed in this release and in the company's filings with the Securities and Exchange Commission. Accordingly, actual results may differ materially from those anticipated in any forward-looking statements. --------------------------------------------------------------------------------