Encompass Health Corporation · NYSE:EHC
Encompass Health — HealthSouth — Merger or Acquisition (November 2014)
13 slides from Encompass Health's merger presentation, Nov 24, 2014
Slide 1: HealthSouth Acquires Encompass Home Health & Hospice
HealthSouth Acquires Encompass Home Health & Hospice 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements The information contained in this presentation includes certain estimates, projections and other forward- looking information that reflect our current outlook, views and plans with respect to future events, including the purchase price and the likelihood, timing and effect
Slide 3: Agenda
Agenda Transaction Summary…………………………………………………………………………………………… 4 Strategic Rationale…………………………………………………………………………………………. 5 Enhanced Growth Profile……………………………………………………………………………………… 6 Encompass: Ov erv iew………………………………………………………………………………….. 7 Encompass: Well-Positioned for Shift in Coordinated Care Deliv
Slide 4: Transaction Summary
Transaction Summary $750 million purchase price ― Includes an approx. $40 million (NPV) tax benefit ― Transaction multiple (net of tax benefit) of approx. 9.5x based on 2015 expected Adjusted EBITDA contribution • 5th largest provider of Medicare-focused Accretive upon closing (82% Medicare) ski
Slide 5: Strategic Rationale
Strategic Rationale Attractive opportunity to enter the $33.5 billion Medicare home health and hospice markets which are adjacent to our core inpatient rehabilitation facilities (IRF) business Brings together two best-of-class post-acute providers with regard to patient outcomes and operating ef
Slide 6: Enhanced Growth Profile
Enhanced Growth Profile Organic growth fueled by operating improvements in previously acquired businesses ― Encompass has a strong record of meaningful growth following acquisition Significant opportunity to continue growth via acquisition ― Encompass has acquired 45 home health businesses since
Slide 7: Encompass: Overview
Encompass: Overview History of Business • 5th largest provider of Medicare-focused Founded in Dallas by April 1998 Anthony as a platform to (82% Medicare) skilled home health services acquire home health in the U.S. with 140 locations across 13 states Spun-out technology division agencies 2001 as Ho
Slide 8: Encompass: Well-Positioned for Shift in Coordinated Care Delivery Models
Encompass: Well-Positioned for Shift in Coordinated Care Delivery Models As healthcare moves towards value based medicine, Encompass’ competitive advantages position it to be the leading partner to health systems, payors, and ACO’s. Encompass key attributes make it… …an ideal partner in the new land
Slide 9: Encompass: Operational Excellence
Encompass: Operational Excellence 100% utilization of leading-edge technology embedded in culture, driving superior clinical and operational outcomes. • Encompass internally developed Homecare Homebase (“HCHB”), which is the #1 IT platform in the home health and hospice industry. • The “Encompass Wa
Slide 10: Encompass: Clinical Excellence
Encompass: Clinical Excellence Culture of excellence that embraces technology ensures clinical consistency across agencies and markets • Combining technology with substantial training resources has resulted in staff that is committed to providing quality care to patients. • Employees dedicated to a
Slide 11: Encompass: Geographic Overlay with HealthSouth
Encompass: Geographic Overlay with HealthSouth Legend HLS Hospitals - 105 Encompass Home Health Encompass Hospice Encompass Pediatric 11
Slide 12: Transaction Summary
Transaction Summary Purchase Price • $750 million • All cash; no share dilution Consideration • Encompass management rolling equity into the transaction • 9.5x expected 2015 EBITDA net of tax benefits (approx. $40 Deal Multiple million in tax benefits) • Funded with cash on hand and incremental debt
Slide 13: HEALTHSOUTH.
a HEALTHSOUTH. 4% encompass" Yaw HOME HEALTH & HOSPICE HEALTHSOUTH,