On December 1, Aveanna Healthcare Holdings, a pediatric home health care company, announced that it has completed the acquisition of Accredited Home Care, a home care agency in the western United States, for a base price of $180 million.
Aveanna Healthcare was founded in 2017 and cares for upwards of 50,000 patients in 27 states across more than 200 branch offices. In April 2021, Aveanna went public through a $100 million IPO.
Founded in 1980 and operating in California, Accredited Home Care provides nursing and home health services to more than 9,000 patients annually through its team of 6,250 field nurses and caregivers. Accredited has five offices located in Los Angeles, Orange, and San Diego counties and had approximately $114.8 million in revenue for the twelve months ending on August 31, 2021.
The acquisition of Accredited Home Care was finalized for a base purchase price of $180 million, plus up to $45 million subject to satisfaction of certain 2021 volume targets.
Accredited Home Care is expected to be fully integrated into Aveanna in 2022, with most of the process occurring within the first 180 days. Through Accredited’s home care business, thousands of patients have reduced their need for institutional care and their overall healthcare expenditures. Rod Windley, Executive Chairman of Aveanna, said, “This combination will enhance Aveanna’s position in California to benefit from the accelerating utilization of a growing variety of home-based care options for patients and their families.”
Edge Healthcare Partners served as Aveanna’s financial advisor, and Greenberg Traurig, LLP as its legal advisor. The Braff Group acted as Accredited’s financial advisor and Yong Gruber Associates as its legal advisor.
This acquisition is Aveanna’s second deal of the final 2021 quarter, where it previously purchased Comfort Care Home Health, a therapy and skilled nursing company in Pelham, Alabama for $345 million. Aveanna’s activity in the Home Health and Hospice sector further goes to show just how active the market is and will, hopefully, continue to be so.
