American Red Cross acquires HemaCare's red blood cell collection operation assets

HemaCare Corporation (OTCBB:HEMA) announced today that it has reached a definitive agreement to sell certain assets of its Blood Services operations to the American Red Cross. Under the terms of the sale, which closed today, HemaCare sold its red blood cell collection operation assets to the American Red Cross. The sale does not include HemaCare's platelet collection business.

“This transaction will enable us to better focus on our most profitable growth opportunities, while also providing us with cash to support geographic expansion of our rapidly growing cell therapy collection capabilities.”

Pete van der Wal, HemaCare's Chief Executive Officer, said, "This transaction will enable us to better focus on our most profitable growth opportunities, while also providing us with cash to support geographic expansion of our rapidly growing cell therapy collection capabilities."

Under the terms of the agreement, the American Red Cross acquired HemaCare's red blood cell collection operation assets in Los Angeles and Maine, consisting primarily of equipment, vehicles and business records, for an aggregate purchase price of $3.0 million plus an additional amount equal to the value of HemaCare's inventory of blood products on the closing date. The parties also entered into a multi-year platelet purchase agreement pursuant to which HemaCare will sell to the American Red Cross a minimum of 7,000 units of single donor platelets per contract year.

As a result of the sale, HemaCare will effect a reduction in force of approximately 100 employees in California and Maine, and HemaCare will incur a third quarter charge of approximately $900,000 associated with this action.