Addus HomeCare Corporation (Nasdaq: ADUS), a provider of home care services, has announced a definitive agreement to acquire the personal care division of AccentCare for an anticipated purchase price, after customary purchase price adjustments, of approximately $275.0 million.
The transaction relates only to AccentCare’s personal care operations outside of New York and does not relate to its hospice and home health operations. The acquired operations serve an average daily census of approximately 13,700 customers through locations in a 10-state footprint. Addus expects to close the transaction following completion of regulatory approvals and subject to customary closing conditions. Addus will fund the acquisition through a combination of the company’s revolver and cash on hand.
This strategic acquisition broadens Addus’ personal care service line and further establishes the company as a leading multi-state scaled, non-franchise home care platform. The acquisition significantly expands Addus’ personal care service capabilities in four primary states: Texas, Illinois, California, and Arizona, while also adding operations in six additional states: Colorado, Georgia, Minnesota, Pennsylvania, Tennessee, and Washington.
Commenting on the announcement, Dirk Allison, chairman and chief executive officer of Addus, stated, “We are excited to announce the acquisition of AccentCare’s personal care operations, which directly aligns with our strategic growth initiatives. The acquisition is expected to add approximately $280 million in annualized personal care revenue, representing a roughly 19% increase to Addus’ revenue base, and is expected to be accretive to financial results. It will deepen our operational presence across key markets, while enhancing our capability to collaborate with our managed care organizations and value-based care partners. This acquisition continues our growth strategy to leverage our strong personal care experience to build scale in existing markets as well as enter select new markets.”
Allison continued, “We look forward to welcoming the experienced caregivers and staff of AccentCare personal care operations to the Addus family and working together to maintain our commitment to providing exceptional home-based care.”
Laura Tortorella, chief executive officer of AccentCare, added, “Addus is a highly respected national leader in personal care, making them the ideal home for our personal care operations and our dedicated caregivers. This agreement ensures that our clients will continue to receive outstanding, compassionate care from a team completely focused on their daily needs, allowing for continued growth of the segment under proven leadership. This is an exciting milestone for our personal care colleagues, and a clear reflection of both the strength of our personal care service line and the exceptional care our teams deliver every day.”
Evercore is serving as financial advisor and Bass Berry & Sims PLC is serving as legal counsel to Addus in this transaction. Guggenheim Securities, LLC and J.P. Morgan are serving as financial advisors and Ropes & Gray, LLP is serving as legal counsel to AccentCare.
