It’s Been a Busy Summer for Addus HomeCare

Addus HomeCare Corporation (NASDAQ: ADUS) spent the summer on the acquisition trail, announcing two deals for three targets and the completion of a previously announced transaction.

On August 1st, the company acquired Alliance Home Health Care, LLC and its affiliate, House Calls of New Mexico, LLC, both located in New Mexico with servicees across the state. The companies’ combined annual revenues are approximately $19 million, with 60% derived from hospice care and 20% each from personal care and home health care services.

The deal expands its reach in New Mexico, following its 2017 acquisition of Options Home Care for $340 million and its 2013 deal for Coordinated Home Health Care, LLC for an undisclosed price. Based in Clovis, Options provides personal care services in more than 20 counties in the state. Coordinated Home Health, based in Las Cruces, provided home living assistance and personalized care with 16 locations in southern New Mexico.

On the same day, the company acquired the operating assets of Foremost Home Care, Inc., a personal care provider based in New York City, with annual revenues of approximately $6 million. The aggregate purchase price for both Foremost and Alliance was approximately $24 million.

Addus added another hospice component to its service model at the end of August, announcing a $130 million cash deal for Hospice Partners of America, LLC, a portfolio company of Eastside Partners since 2011. The price represents $118.4 million of value, net of the present value of $11.6 million of estimated tax benefits.

Hospice Partners, based in Birmingham, Alabama, is a multi-state hospice services provider serving an average daily census of approximately 1,000 patients through 21 locations across Idaho, Kansas, Missouri, Oregon, Texas and Virginia.

This acquisition supports Addus’ network in Oregon, Virginia and Idaho while adding a new market in Texas. It adds hospice services in markets where Addus already has a personal care presence.

Earlier in the summer, on June 1, Addus closed its acquisition of VIP Health Care Services, another New York City-based personal care services provider. That deal was announced in November 2018, with a price of $28 million.

VIP Health Care has annual revenues of about $50 million, and serves approximately 1,250 consumers in Manhattan, the Bronx, Brooklyn, Queens, Rockland, West­chester and Nassau counties with more than 1,500 caregivers in six locations.

 

 

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