AMERICAN SHARED HOSPITAL SERVICES (NYSE MKT:AMS), a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, announced today that it has entered into an agreement to sell its Gamma Knife and radiation therapy services business in Turkey to Euromedic Cancer Treatment Centers BV (Euromedic). The transaction is subject to standard closing conditions, and is expected to close on June 10, 2014. Payment to AMS will be in the form of cash, which predominantly will be used to pay down debt associated with the Turkish operations. Additionally, AMS is eligible for an earn-out based on future revenue from the two Gamma Knife units and one Image Guided Radiation Therapy (IGRT) unit AMS currently operates in Istanbul and Adana, Turkey. Additional terms of the transaction were not disclosed.
"While we were pleased by the performance of our Gamma Knife and IGRT business in Turkey since we entered the market in 2011, we have decided to focus our management and financial resources on the development of our far larger domestic Gamma Knife business and our exciting growth opportunity in proton therapy. We are glad that Euromedic will continue providing Gamma Knife and IGRT services in Turkey, which we believe is a market with considerable potential. This is why we anticipate that the earn-out portion of the transaction may generate considerable returns for AMS over the next few years," said AMS Chairman and Chief Executive Officer Ernest A. Bates, M.D.
American Shared Hospital Services