Company Adds Significant Hospice Presence in
Illinois with Annual Revenues of Approximately $55 Million and
Census of Approximately 750 Patients
Addus HomeCare Corporation (Nasdaq: ADUS), a provider of home
care services, and JourneyCare, Inc. (JourneyCare), one of the
largest hospice and palliative care providers in Illinois, today
jointly announced the execution of a definitive agreement under
which Addus will acquire substantially all the assets of
JourneyCare, for an anticipated purchase price, after customary
purchase price adjustments, of approximately $85 million. Based in
Glenview, Illinois, JourneyCare serves an average daily adult
census of approximately 750 patients in a surrounding 13 county
territory. The parties expect to close the transaction on or about
February 1, 2022, following completion of all required regulatory
approvals, subject to customary closing conditions. Addus will fund
the acquisition through a combination of cash on hand and the
Company’s revolving credit facility.
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Commenting on the announcement, Dirk Allison, Chairman and Chief
Executive Officer of Addus HomeCare Corporation, stated,
“JourneyCare has a long, rich history as a not-for-profit hospice
care provider in the Chicago area. Addus will leverage our scale
and expertise to provide best-in-class hospice services. With the
recent addition of Summit Home Health, the proposed acquisition of
JourneyCare will mark the achievement of our goal to own and
operate all three levels of home care in Illinois. We anticipate
the acquisition to be nominally accretive during the first twelve
months as we work through the integration of the acquisition into
our standard operating model.
“We believe JourneyCare will be an ideal addition for Addus with
an established market presence and excellent reputation for quality
care. We look forward to expanding our market reach in Illinois and
offering patient-centered hospice services to more individuals who
will benefit from compassionate care in their homes.”
Kimberly Hobson, President and Chief Executive Officer of
JourneyCare, added, “We very carefully selected Addus to carry
forward the JourneyCare clinical operations, and we believe this
combination will benefit our employees, patients and everyone
associated with JourneyCare. We share the same commitment to
providing quality, end of life care, and we look forward to working
together to close this important transaction.”
Allison added, “Acquisitions are an important part of our growth
strategy, and we are pleased to start 2022 on a strong note. Our
development team continues to do an outstanding job of identifying
strategic acquisitions and our strong capital structure supports
our ability to continue this successful track record. We look
forward to the growth opportunities ahead for Addus in 2022.”
Bass Berry Sims, PLLC served as legal counsel to Addus.
JourneyCare was represented by Arnold & Porter as legal counsel
and The Braff Group acted as its investment banker.
About Addus HomeCare
Addus HomeCare is a provider of home care services that
primarily include personal care services that assist with
activities of daily living, as well as hospice and home health
services. Addus HomeCare’s consumers are primarily persons who,
without these services, are at risk of hospitalization or
institutionalization, such as the elderly, chronically ill and
disabled. Addus HomeCare’s payor clients include federal, state and
local governmental agencies, managed care organizations, commercial
insurers and private individuals. Addus HomeCare currently provides
home care services to approximately 44,500 consumers through 207
locations across 22 states. For more information, please visit
www.addus.com.
About JourneyCare
JourneyCare is a nonprofit, community-based organization that
provides care and support to families living with serious illness.
With more than 40 years of healthcare leadership and expertise,
JourneyCare has achieved national recognition for growth,
innovation, community partnerships and best practices in caring for
seriously ill adults and children. JourneyCare is licensed to serve
13 counties in the Chicago region and is one of the largest
providers of hospice and palliative care in Illinois. To learn
more, visit www.journeycare.org.
Forward-Looking Statements
Certain matters discussed in this press release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements may be identified by words such as “preliminary,”
“continue,” “expect,” and similar expressions. These
forward-looking statements are based on our current expectations
and beliefs concerning future developments and their potential
effect on us. Forward-looking statements involve a number of risks
and uncertainties that may cause actual results to differ
materially from those expressed or implied by such forward-looking
statements, including discretionary determinations by government
officials, the consummation and integration of acquisitions,
anticipated transition to managed care providers, our ability to
successfully execute our growth strategy, unexpected increases in
SG&A and other expenses, expected benefits and unexpected costs
of acquisitions and dispositions, management plans related to
dispositions, the possibility that expected benefits may not
materialize as expected, the failure of the business to perform as
expected, changes in reimbursement, changes in government
regulations, changes in Addus HomeCare’s relationships with
referral sources, increased competition for Addus HomeCare’s
services, changes in the interpretation of government regulations,
the uncertainty regarding the outcome of discussions with managed
care organizations, changes in tax rates, the impact of adverse
weather, higher than anticipated costs, lower than anticipated cost
savings, estimation inaccuracies in future revenues, margins,
earnings and growth, whether any anticipated receipt of payments
will materialize, any future impact to our business operations,
reimbursements and patient population due to the recent COVID-19
global pandemic, and other risks set forth in the Risk Factors
section in Addus HomeCare’s Annual Report on Form 10-K filed with
the Securities and Exchange Commission on March 1, 2021, which is
available at www.sec.gov. Addus HomeCare undertakes no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. In addition,
these forward-looking statements necessarily depend upon
assumptions, estimates and dates that may be incorrect or imprecise
and involve known and unknown risks, uncertainties, and other
factors. Accordingly, any forward-looking statements included in
this press release do not purport to be predictions of future
events or circumstances and may not be realized.
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Brian W. Poff Executive
Vice President, Chief Financial Officer Addus HomeCare Corporation
(469) 535-8200 investorrelations@addus.com Dru Anderson CCI FINN Partners (615)
324-7346 dru.anderson@finnpartners.com
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