Addus HomeCare (Addus), a provider organization with comprehensive home care services, announced the signing of a definitive agreement to purchase Hospice Partners of America, LLC, a multi-state provider organization of hospice services, headquartered in Birmingham, Alabama. The financial terms of the transaction involved a cash purchase price of $130.0 million, representing $118.4 million of value, net of the present value of $11.6 million of estimated tax benefits.
Hospice Partners of America currently serves an average daily census of approximately 1,000 consumers 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. Addus will fund the acquisition through the Company’s revolving credit facility.
According to Dirk Allison, president and chief executive officer of Addus, the agreement to purchase Hospice Partners of America will support Addus’ strategic plan to adding the hospice services in additional markets. Additionally, according to Mr. Allison, the acquisition will also allow Addus HomeCare to expand services in Texas, adding additional opportunities for organizational growth.
Addus HomeCare is a provider organization of comprehensive home care services that include, primarily, personal care services that assist with activities of daily living, as well as hospice and home health services. Addus’ consumers are primarily persons who, without these services, are at risk of hospitalization or institutionalization, such as the elderly, chronically ill, and disabled. Addus’ payor clients include federal, state, and local governmental agencies, managed care organizations, commercial insurers, and private individuals. Addus currently provides home care services to approximately 41,000 consumers through 165 locations across 24 states.
Hospice Partners of America’s mission is to provide exceptional physical, emotional, social, and spiritual support, enabling consumers and their loved ones to have an end-of-life experience characterized by dignity, choice, and comfort. Hospice Partners of America values their team by treating them fairly and with respect to provide exceptional customer service. The organization aims to adhere to the highest ethical and compliance standards and is committed to a successful future that is focused on growth, innovation, and continued learning.
This was reported by Addus HomeCare on August 26, 2019.
Contact information: Hospice Partners of America, LLC, 3021 Lorna Road, Suite 200, Birmingham, Alabama 35216; Website: www.hospicepartnersofamerica.com