Addus HomeCare has agreed to acquire AccentCare’s personal care operations outside New York for approximately $275 million, a transaction expected to add roughly $280 million in annualized revenue and materially expand Addus’ nationwide home care platform.
The acquired business serves an average daily census of approximately 13,700 customers across a 10-state footprint.
Addus said the additional revenue would represent approximately a 19% increase to its existing revenue base and expects the acquisition to be accretive to financial results.
The transaction significantly expands Addus’ presence in Texas, Illinois, California and Arizona while adding operations in Colorado, Georgia, Minnesota, Pennsylvania, Tennessee and Washington.
The transaction does not include AccentCare’s hospice or home health businesses and excludes its New York personal care operations.
Addus intends to finance the acquisition with a combination of cash on hand and borrowings under its revolving credit facility.
Management sees the expanded scale as particularly useful when working with managed care organizations and value-based care partners.
The deal follows Addus’ strategy of building density in existing personal care markets while selectively entering new states.
Completion remains subject to regulatory approvals and customary closing conditions.
Evercore is advising Addus financially and Bass Berry & Sims is providing legal counsel. Guggenheim Securities and J.P. Morgan are financial advisors to AccentCare, with Ropes & Gray serving as legal counsel.
KEY QUOTES:
“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.”
Dirk Allison, Chairman and CEO of Addus HomeCare
“Addus is a highly respected national leader in personal care, making them the ideal home for our personal care operations and our dedicated caregivers.”
Laura Tortorella, CEO of AccentCare
