Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services based in Frisco, TX, announced that it has completed the acquisition of in-home health care agency Summit Home Health, LLC, effective October 1, 2021. The transaction was funded by Addus with cash on hand.
Headquartered in Bolingbrook, IL, Summit has been providing in-home health care to patients across the greater Chicago area since 2009. The company serves an average daily census of approximately 240 patients for skilled home health services. Summit currently has annualized revenues of approximately $7.0 million.
Established in 1979, Addus HomeCare Corporation provides hospice, home health and personal care services to nearly 44,000 patients through 211 locations in 22 states. Addus’ consumer base consists primarily of persons who, without these services, are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. The company’s payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals.
Dirk Allison, Chairman and Chief Executive Officer of Addus HomeCare Corporation, commented on the significance of the deal, saying “This acquisition advances our goal of adding clinical services in geographic markets where Addus currently has a strong personal care presence and opens further opportunities in value-based care. The greater Chicago area is already one of our largest personal care markets, and we look forward to utilizing the operational base from Summit to expand to other service areas in Illinois.” The addition of Summit Home Health will expand Addus’ already large presence in the Chicago area and further its goal to build out home health, hospice and personal care lines in specific markets and spaces.
Over the past 12 months, Addus has made multiple deals in the home health and hospice segment. In December of 2020, Addus completed the acquisition of Cincinnati-based Queen City Hospice, LLC and its affiliate Miracle City Hospice, LLC for a cash purchase price of $192 million. Later, In July 2021, Addus acquired Armada Skilled Home Health & Hospice, yet another home health and hospice provider, for a purchase price of $29 million.
Addus’ acquisition plan is already proving to be fruitful for the company. During the first quarter of 2021, Addus saw net service revenues of $205.3 million, an increase of 7.9% from $190.2 million for the first quarter of 2020. Addus also saw an increase of adjusted EBITDA, which jumped 8.9%, from $17.7 million during the first quarter of 2020, to $19.3 million for the first quarter of 2021. Addus’ hospital segment showed significant improvements as well, bringing in nearly $36.1 million during the first quarter of 2021, a 43.3% increase from $25.2 million in the prior year’s period.
