Three Oaks Hospice, a portfolio company of Health Velocity Capital, was just launched in May 2019, but the company is wasting no time to expand. This week the company bought three hospices in Texas, Total Hospice & Palliative Care in Richardson; ABS Palliative in Carrollton; and Hospice Care and Fellowship Hospice in San Antonio.
The acquisitions give it a presence in Dallas, Fort Worth, and San Antonio, providing more than 84,000 days of care annually. The deal also increases its referral network to more than 200 sources. To fuel future growth, Three Oaks has received more than $21 million from Granite Growth, Health Velocity Capital and Petra Capital.
It’s been a slow month in the home health & hospice sector, with only two announced deals. At the beginning of the month, LHC Group, Inc. (NASDAQ: LHCG) acquired Caregivers Health Network, Inc. for an undisclosed price. The acquisition is a joint venture with Norton Healthcare, which purchased a minority interest in Caregivers Health Network and renamed it Norton Home Health. Norton serves adult and pediatric patients throughout Louisville, southern Indiana, and Kentucky. The agency will be integrated in accordance with LHC Group’s current joint venture processes and procedures.
In Q3, there have been only 17 deals, and the largest was Addus HomeCare Corporation’s (NASDAQ: ADUS) acquisition of Hospice Partners of America, LLC for $130 million. The target company, a portfolio company of Eastside Partners, 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. It reported an annualized revenue of $55 million and an estimated EBITDA of $9.9 million.
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. This deal follows the company’s acquisition of Alliance Home Health Care in New Mexico and assets of Foremost Home Care in New York on August 5.