Business
Addus Homecare Signs Definitive Agreement To Purchase Hospice Partners Of America
FRISCO, Texas, Aug. 26, 2019 /PRNewswire/ -- Addus HomeCare Corporation (NASDAQ: ADUS), "Addus" or "the Company," a provider of comprehensive home care
About this update from Addus Homecare Corporation
[{"type":"text","content":"FRISCO, Texas, Aug. 26, 2019 /PRNewswire/ -- Addus HomeCare Corporation (NASDAQ: ADUS), \"Addus\" or \"the Company,\" a provider of comprehensive home care services, today announced the signing of a definitive agreement to purchase Hospice Partners of America, LLC, a multi-state provider of hospice services, headquartered in Birmingham, Alabama, for a cash purchase price of $130.0 million, representing $118.4 million of value, net of the present value of $11.6 million of estimated tax benefits. Hospice Partners of America currently serves an average daily census of approximately 1,000 patients through 21 locations across Idaho, Kansas, Missouri, Oregon, Texas and Virginia, with annualized revenue of approximately $55 million. Addus expects to complete the transaction following completion of all required regulatory approvals, subject to customary closing conditions. Addus will fund the acquisition through the Company's revolving credit facility.\nDirk Allison, President and Chief Executive Officer of Addus, commented, \"We are very pleased to announce our agreement to purchase Hospice Partners of America, an established provider of hospice services in multiple states. 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.\n\"We look forward to Hospice Partners of America's management team and clinical staff joining our Addus family, as we leverage our combined capabilities to develop a national platform for hospice services. Importantly, we share the same mission to provide quality, compassionate healthcare services to more consumers in their homes. We believe this is a good strategic fit, which should facilitate a smooth integration. Furthermore, we expect this transaction to be immediately accretive to our 2019 financial results,\" said Allison. \nNorma English, Chief Executive Officer of Hospice Partners of America, ...