The hospice market has been booming in 2020, with a string of high-profile mergers and sales for hospice providers. Last week, Addus HomeCare Corporation (NASDAQ: ADUS) continued the trend with the acquisition of Queen City Hospice, LLC for $192 million in cash, representing $162.8 million of value plus $29.2 million in net present value of estimated tax benefits. 

Queen City Hospice currently serves an average daily census of approximately 900 patients across the state of Ohio, including patients in the Cincinnati, Columbus and Dayton markets. It was a portfolio company of Stonehenge Partners. The provider has generated EBITDA of $8 million and an annualized revenue of $56 million. 

The deal includes Queen City Hospice’s affiliate Miracle City Hospice, LLC. Addus will fund the acquisition through a combination of cash on hand and the company’s revolving credit facility. 

Addus HomeCare last reported a deal in July, according to search results in our Healthcare Deal Database, when it purchased A Plus Health Care, Inc. for $12.2 million. A Plus Health Care provides home care services, including personal care, private duty nursing, care management, and medical staffing, to approximately 1,200 clients through over 650 employees in seven office locations. 

Last year in August, Addus HomeCare added Hospice Partners of America, LLC from Eastside Partners for $130 million, representing $118.4 million of value, net of the present value of $11.6 million of estimated tax benefits. Hospice 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.