Addus HomeCare to Acquire Queen City Hospice

FRISCO, Texas (November 13, 2020)—Addus HomeCare Corporation, a provider of homecare services, has announced the signing of a definitive agreement to acquire Queen City Hospice, LLC, and its affiliate Miracle City Hospice, LLC (together Queen City Hospice) for a cash purchase price of $192.0 million, representing $162.8 million of value, net of the present value of $29.2 million in estimated tax benefits. Based in Cincinnati, Ohio, 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. Addus expects to close the transaction following completion of all required regulatory approvals, subject to customary closing conditions. Addus will fund the acquisition through a combination of cash on hand and the Company’s revolving credit facility.

Dirk Allison, President and Chief Executive Officer of Addus HomeCare Corporation, commented, “We are very pleased to announce our agreement to acquire Queen City Hospice, a leading provider of hospice services in the state of Ohio. This proposed acquisition is aligned with our strategy of providing hospice and home health care in markets where we already have a significant personal care presence. With this acquisition, Ohio becomes the second state where we have the capability to provide all three levels of home care. We are excited to have this opportunity to combine a well-respected and growing hospice operation like Queen City Hospice with our existing operations.

“We look forward to working with the experienced operational leadership team at Queen City Hospice and its clinical staff of over 600 employees. Importantly, we share the same dedication to patient-centered hospice services that allow consumers to receive quality, compassionate care in their homes. We believe this acquisition is a great strategic fit for Addus, and we look forward to the additional opportunities for growth through our combined operations. Queen City Hospice has annualized revenues of approximately $56 million, and we expect this transaction to be immediately accretive to our financial results,” said Allison.

James Vannelle, Chief Executive Officer of Queen City Hospice, LLC, said, “We are excited to have our team join the Addus family and believe this will be a great opportunity for everyone associated with Queen City Hospice. We are mindful of our critical role in meeting the demand for quality end of life care and supporting the patients and families we serve. We recognize this same level of commitment in the Addus team, and we look forward to working together to extend our market reach so that Queen City Hospice can provide quality hospice services to more patients.”

Allison said, “Acquisitions have been and remain an important part of our growth strategy at Addus. This pending acquisition, along with the other two acquisitions we have closed in 2020, will bring our total acquired annualized revenues to approximately $82 million. We have strategically maintained a strong capital structure, which allows us to pursue acquisition opportunities as they occur. While our approach to acquisitions has emphasized appropriate caution and additional diligence through the early phase of the COVID-19 pandemic, we are now fully engaged in the process of identifying and pursuing acquisition opportunities in each of our three operating segments. We have an outstanding development team with a track record of success and a strong acquisition pipeline, which together support our ability to extend our market reach and further strengthen our competitive position.”

Raymond James Health Care Banking acted as financial advisor to Addus.