CALSTAR and REACH announce merger
CALSTAR and REACH are entering into an agreement that will place CALSTAR within the same corporate holding company as REACH
Two of California’s air medical ambulance providers California Shock Trauma Air Rescue (CALSTAR) and REACH Air Medical Services LLC (REACH) are entering into an agreement that will place CALSTAR within the same corporate holding company as REACH. Both companies have been operating for around three decades and aim to ‘better serve the community through their united efforts’.
Sean Russell, REACH president, and Lynn Malmstrom, CALSTAR CEO, made a joint announcement on 16 June about the merger. CALSTAR will become a limited liability company as part of the deal, and will operate under the current CALSTAR brand as CALSTAR Air Medical Services LLC. It will be one of three firms under REACH Medical Holdings LLC, a holding company which is part of Air Medical Group Holdings Inc.
Both REACH and CALSTAR officials say they foresee no base closures with the goal being to focus on integration, support and maintaining the existing services of both companies. They have also told employees that no other decisions affecting base locations, staffing or fleet have been made.
Russell stated: “Our companies have been competitors for 30 years, built upon similar foundations of high quality services, patient care and loyalty to our communities, to our patients and to our members who rely upon us for safe, reliable air medical transport.”
The proceeds from this transaction will go to fund a new non-profit foundation to benefit the public, though the aim of this foundation is still undetermined. The financial terms are also not being disclosed at this time.