FRISCO, Texas—Addus HomeCare Corporation, a provider of homecare services, announced a definitive agreement to acquire the personal care division of AccentCare for approximately $275 million.
The transaction relates only to AccentCare’s personal care operations outside of New York and does not relate to its hospice and home health operations. The company said the acquired operations serve an average daily census of approximately 13,700 customers through locations in a 10-state footprint. Addus said it expects to close the transaction following completion of regulatory approvals and subject to customary closing conditions. Addus added it will fund the acquisition through a combination of the company’s revolver and cash on hand.
The company said this acquisition broadens Addus’ personal care service line. The acquisition significantly expands Addus’ personal care service capabilities in four primary states: Texas, Illinois, California and Arizona, while also adding operations in six additional states: Colorado, Georgia, Minnesota, Pennsylvania, Tennessee and Washington.
"We are excited to announce the acquisition of AccentCare’s personal care operations, which directly aligns with our strategic growth initiatives," said Dirk Allison, chairman and CEO of Addus. "The acquisition is expected to add approximately $280 million in annualized personal care revenue, representing a roughly 19% increase to Addus' revenue base, and is expected to be accretive to financial results. It will deepen our operational presence across key markets, while enhancing our capability to collaborate with our managed care organizations and value-based care partners. This acquisition continues our growth strategy to leverage our strong personal care experience to build scale in existing markets as well as enter select new markets.”
“Addus is a highly respected national leader in personal care, making them the ideal home for our personal care operations and our dedicated caregivers," said Laura Tortorella, CEO of AccentCare. "This agreement ensures that our clients will continue to receive outstanding, compassionate care from a team completely focused on their daily needs, allowing for continued growth of the segment under proven leadership. This is an exciting milestone for our personal care colleagues, and a clear reflection of both the strength of our personal care service line and the exceptional care our teams deliver every day.”