Amedysis, Inc. (NASDAQ: AMED) is expanding hospice services. The Baton Rouge, Louisiana-based home care company just acquired AseraCare Hospice in Plano, Texas. Hospice has been an increasing focus for Amedysis, which has long concentrated on personal home care services.
Founded in 1994, AseraCare Hospice cares for more than 2,100 patients daily and employs more than 1,200 hospice professionals in 44 locations across 14 states, generating approximately $117 million in annual revenues. It is the hospice subsidiary of skilled nursing facility operator Golden Living, formerly Beverly Enterprises.
Amedysis agreed to a purchase price of $235 million for 100% ownership. The price includes a $32 million tax assets, bringing the net purchase price to $203 million (1.7x revenue).
The transaction adds a greater scale to Amedisys’ nationwide network of 146 hospice care centers. Post-closing, the combined hospice operations will include 190 care centers in 35 states, with an average daily census of approximately 14,000 patients and approximately 7,000 hospice employees.
In 2018, the company outlined a new hospice strategy with the goal of executing large acquisitions, adding tuck-in deals and building de novo operations where needed. In October 2018, Amedysis acquired Compassionate Care Hospice Group in Parsippany, New Jersey for $327.9 million. At the time, Compassionate Care cared for approximately 3,300 patients daily in 53 locations across 24 states.
Since then it’s added RoseRock Healthcare, a specialized hospice care agency in Tulsa, Oklahoma for $17.5 million and Asana Hospice in Fort Worth, Texas for $67 million. Eight de novo operations were added along the way, the company said.