The Home Health Care & Hospice sector just announced its 47th acquisition of 2016, and with about two months to go, it is likely that this sector will surpass last year’s total of 51 acquisitions.
On October 17, 2016, Almost Family, Inc. (NASDAQ: AFAM), a provider of home health nursing, rehabilitation and personal care services in more than 250 locations, announced its acquisition of Community Health Systems’ (NYSE: CYH) home health division. CHS’s home health business serves just about half of its hospitals, allowing the opportunity for growth into several more hospital markets. This purchase makes Almost Family the third largest operator in the industry.
CHS is selling the controlling, 80% interest in its Home Health division, which operates 74 home health and 15 hospice branch locations in 22 states, for a purchase price of $128 million. The transaction is part of CHS’ plans to reduce its portfolio and overall debt.
Following the completion of this transaction, Almost Family will operate 340 branches across 26 states, and its annual net revenue run rate is expected to exceed $800 million. Approximately $170 million in annual revenues derives from the home health business, and approximately $30 million from the hospice business.
This is Almost Family’s third acquisition in 2016, with its first being the $37 million purchase of Long Term Solutions, Inc., a provider of in-home assessment services to the long-term care insurance industry, and its second being the purchase of certain home health assets from privately-held ResCare Inc., for an undisclosed amount.
