Addus HomeCare Expands Tennessee Home Care Presence With Agreement to Acquire Tennessee Quality Care Operations
29 June 2023 - 10:00PM
Business Wire
Company Adds Significant Clinical Market
Presence in Tennessee with Annualized Revenues of Approximately $40
Million
Addus HomeCare Corporation (Nasdaq: ADUS), a provider of home
care services, today announced a definitive agreement to acquire
the entities comprising Tennessee Quality Care, a provider of home
health, hospice, and private duty nursing services. Tennessee
Quality Care serves an average daily census of approximately 1,800
patients through 17 locations covering a service area of over 50
counties in Tennessee. Addus expects to close the transaction in
the third quarter of 2023, following completion of customary
closing conditions. Addus will fund the acquisition through a
combination of cash on hand and the Company’s revolving credit
facility.
Commenting on the announcement, Dirk Allison, Chairman and Chief
Executive Officer of Addus, stated, “We are pleased to expand our
market presence in Tennessee with the addition of the Tennessee
Quality Care operations. This acquisition fits squarely into our
growth strategy to leverage our strong personal care presence and
add clinical services in key markets. The acquired operations are
approximately 70 percent home health, including private duty
nursing, and 30 percent hospice care, expanding our market coverage
to all three levels of care in the state. Tennessee is a
Certificate of Need state for both home health and hospice care,
making entry into the market more difficult, particularly at scale.
We are excited to add approximately $40 million in annualized
revenues in the state with this acquisition and look forward to
further growth and opportunities from our ability to provide all
three levels of care.”
“We believe this acquisition will be an ideal addition for Addus
with an established market presence and reputation for quality,
compassionate care. We have a shared commitment to provide safe and
cost-effective home care services, and we look forward to the
opportunity to offer patient-centric personal care, home health and
hospice services to more patients and families in Tennessee,” added
Allison.
Michael Bailey, Chief Executive Officer of American Health
Partners, the owner of Tennessee Quality Care, added, “As part of
the American Health Partners family, Tennessee Quality Care has
played an important role in our continuum of care with the primary
goal being to provide the highest quality care and services to our
patients. We are pleased with the opportunity to have Tennessee
Quality Care join Addus and continue to expand its important work
providing quality home health services and premium end-of-life care
in the home setting. This combination will benefit everyone
associated with Tennessee Quality Care, especially the patients,
families, and employees. Addus has an excellent reputation in our
market area, and we look forward to Tennessee Quality Care joining
the Addus family while also continuing the relationship with
American Health Partners.”
Allison added, “Acquisitions are an important part of our growth
strategy, and we will continue to identify and pursue strategic
acquisitions that fit our mission. Addus has a solid record of
driving value from our acquired operations with a proven operating
model. We are fortunate to have a strong capital structure that
supports our acquisition strategy, and we look forward to the
additional opportunities ahead for Addus.”
Raymond James served as financial advisor to Addus in this
transaction.
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 47,500 consumers through 203
locations across 22 states. For more information, please visit
www.addus.com.
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,
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 security breaches, cyber-attacks, loss of
data or cybersecurity threats or incidents, 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
February 28, 2023, which is available at www.sec.gov. The financial
information described herein and the periods to which they relate
are preliminary estimates that are subject to change and
finalization. There is no assurance that the final amounts and
adjustments will not differ materially from the amounts described
above, or that additional adjustments will not be identified, the
impact of which may be material. 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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version on businesswire.com: https://www.businesswire.com/news/home/20230629596124/en/
Brian W. Poff Executive Vice President, Chief Financial Officer
Addus HomeCare Corporation (469) 535-8200
investorrelations@addus.com
Dru Anderson FINN Partners (615) 324-7346
dru.anderson@finnpartners.com
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