Addus Homecare has signed a definitive agreement to acquire Alabama-based hospice services providerHospice Partners of America for $130m in a cash.
The acquisition is expected to complete following necessary regulatory approvals.
Addus expects to fund the deal through its revolving credit facility.
Addus president and CEO Dirk Allison said: “This acquisition is consistent with, and supports our strategy of adding hospice services in markets where we already have a personal care presence.
“Since the acquisition of Ambercare in 2018, we have been looking for additional opportunities to expand our hospice services, and we are delighted to have this opportunity to combine a well-regarded hospice operation like Hospice Partners of America with our existing operations. Importantly, this will also provide a strategic initial entry for Addus into the Texas market, which will provide potential growth opportunities.”
According to Addus, the deal is expected to be immediately accretive to its 2019 financial results.
Hospice Partners of America is located in 21 locations and on an average serves 1,000 patients daily. It has annual revenues of $55m.
Hospice has centres in Virginia, Texas, Oregon, Missouri, Kansas and Idaho.
Hospice Partners of America CEO Norma English said: “We are excited to join the Addus family. We believe that their commitment to quality is firmly aligned with Hospice Partners of America’s goal of providing outstanding end of life care.
“Joining the extensive Addus care network will accelerate our ability to enter new markets and provide hospice services to more patients. We are also very excited about the growth opportunities that being part of the Addus family will offer our employees.”
Raymond James Health Care Banking acted as financial advisor to Addus.
Addus offers home care services to around 41,000 people through 165 locations in 24 US states.