Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, today announced a definitive agreement to acquire the personal care division of AccentCare for an anticipated purchase price, after customary purchase price adjustments, of approximately $275.0 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 acquired operations serve an average daily census of approximately 13,700 customers through locations in a 10-state footprint. Addus expects to close the transaction following completion of regulatory approvals and subject to customary closing conditions. Addus will fund the acquisition through a combination of the Company’s revolver and cash on hand.
This strategic acquisition broadens Addus’ personal care service line and further establishes the Company as a leading multi-state scaled, non-franchise home care platform. 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.
Commenting on the announcement, CEO Dirk Allison stated, "We are excited to announce the acquisition of AccentCare’s personal care operations, which directly aligns with our strategic growth initiatives. 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.”
ADUS shares dumped $1.38, or 1.2%, to $118.72.
