BIRMINGHAM, Alabama (August 17. 2019)--Addus HomeCare Corporation, a provider of comprehensive home care services, announced it has signed a definitive agreement to purchase Hospice Partners of America, LLC, a multi-state provider of hospice services headquartered in Birmingham, Alabama, for a cash purchase price of $130 million, representing $118.4 million of value, net of the present value of $11.6 million of estimated tax benefits.
Hospice Partners of America serves an average daily census of approximately 1,000 patients through 21 locations across Idaho, Kansas, Missouri, Oregon, Texas and Virginia, with annualized revenue of approximately $55 million. Addus expects to complete the transaction following completion of all required regulatory approvals, subject to customary closing conditions.
"We are very pleased to announce our agreement to purchase Hospice Partners of America, an established provider of hospice services in multiple states," Addus President and CEO Dirk Allison said in a news release. "This acquisition is consistent with, and supports our strategy of adding hospice services in markets where we already have a personal care presence. Since the acquisition of Ambercare in 2018, we have been looking for additional opportunities to expand our hospice services, and we are delighted to have this opportunity to combine a well-regarded hospice operation like Hospice Partners of America with our existing operations. Importantly, this will also provide a strategic initial entry for Addus into the Texas market, which will provide potential growth opportunities."
Norma English, CEO of Hospice Partners of America, said the two companies are already aligned.
"We believe that their commitment to quality is firmly aligned with Hospice Partners of America's goal of providing outstanding end of life care," English said. "Joining the extensive Addus care network will accelerate our ability to enter new markets and provide hospice services to more patients. We are also very excited about the growth opportunities that being part of the Addus family will offer our employees."
Addus is a provider of comprehensive home care services including personal care services that assist with activities of daily living, as well as hospice and home health services, and currently provides services to approximately 41,000 consumers through 165 locations across 24 states.
Allison said that the acquisition, along with three others made in 2019, brings the company's total acquired annualized revenues to approximately $130.0 million.
"Our development team continues to identify additional opportunities within our strong acquisition pipeline, which we expect will allow us to extend our market reach and further strengthen our competitive position," he said. "Furthermore, this acquisition broadens and expands our acquisition pipeline in new markets where Hospice Partners of America operates today."
Raymond James Health Care Banking acted as financial advisor to Addus.