After a decline in home health and hospice acquisitions earlier in the year, M&A activity steadied itself in the third and fourth quarters of 2015. There were 12 publicly announced transactions in the fourth quarter, matching the level in the third quarter but well below the fourth quarter of 2014, when there were 20 announced acquisitions.
However, when it comes to the dollars spent on these transactions, there was a sharp drop from $273.85 million in the third quarter to $108.7 million. Most transactions are small and many do not have disclosed prices, which makes comparing the periods difficult. In the fourth quarter of 2014, the total disclosed dollar value of the transactions was $2.55 billion, largely based on two very large purchases.
The largest transaction with a disclosed price in the fourth quarter of 2015 was the purchase of Infinity HomeCare by Amedysis, Inc. for $63.0 million. Infinity is based in Sarasota, Florida and had annual revenues of approximately $50.0 million. The second largest acquisition was Almost Family’s purchase of Home Care by Black Stone for $40.0 million. Based in Ohio, Black Stone had revenues of $46.7 million in 2014.
