Aveanna Healthcare Holdings Inc. (NASDAQ: AVAH), a leading,
diversified home care platform focused on providing care to
medically complex, high-cost patient populations, today announced
that it has successfully completed the acquisition of Comfort Care,
a leading adult home health and hospice company with operations in
Alabama and Tennessee, for $345 million, representing $290 million
of value, net of the present value of approximately $55 million in
estimated net tax benefits. Comfort Care is expected to be fully
integrated into Aveanna during 2022, with the majority of the
integration process occurring in the first 180 days.
Founded in 2000, Comfort Care provides both skilled Home Health
& Hospice services to the traditional Medicare patient
population through a network of 31 locations, primarily throughout
the state of Alabama, with a growing presence in Tennessee. Comfort
Care generates approximately $100 million in annual revenue on a
current run rate basis with approximately 47% of its revenues
derived from home health and approximately 53% of its revenues
derived from hospice services.
Rod Windley, Executive Chairman of Aveanna, commented: "The
addition of Comfort Care advances Aveanna’s strategy of expanding
our Home Health and Hospice segment by adding density in
demographically attractive markets for skilled adult care services.
Comfort Care has an established reputation in Alabama, a growing
presence in Tennessee and a strong management team that will allow
us to bring Aveanna’s high standards of care to even more patients
and families. We’re excited to welcome Comfort Care’s talented
professionals and exceptional capabilities to Aveanna, enhancing
our ability to serve fast-growing, attractive markets."
Alan G. Parker, Chief Executive Officer of Comfort Care, said:
“At Comfort Care, we have always been dedicated to providing our
patients the highest level of quality care with empathy and
professionalism. We were attracted to Aveanna because they share
these same fundamental values. We look forward to continuing to
grow and serve as part of the Aveanna family.”
Aveanna funded the Comfort Care acquisition from a combination
of sources, including: i) proceeds from a new $415 million term
loan closed on December 10, 2021; ii) proceeds from a new $150
million securitization facility closed on November 12, 2021; and
iii) cash from the balance sheet.
Edge Healthcare Partners served as Aveanna's financial advisor,
and Greenberg Traurig, LLP as its legal advisor. Edgemont Partners
served as Comfort Care’s financial advisor and Butler Snow, LLP as
its legal advisor.
About Aveanna Healthcare
Aveanna Healthcare is headquartered in Atlanta, Georgia and has
locations in 30 states providing a broad range of pediatric and
adult healthcare services including nursing, rehabilitation
services, occupational nursing in schools, therapy services, day
treatment centers for medically fragile and chronically ill
children and adults, home health and hospice services, as well as
delivery of enteral nutrition and other products to patients. The
Company also provides case management services in order to assist
families and patients by coordinating the provision of services
between insurers or other payers, physicians, hospitals, and other
healthcare providers. In addition, the Company provides respite
healthcare services, which are temporary care provider services
provided in relief of the patient’s normal caregiver. The Company’s
services are designed to provide a high quality, lower cost
alternative to prolonged hospitalization. For more information,
please visit www.aveanna.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. All statements (other
than statements of historical facts) in this press release
regarding our prospects, plans, financial position, business
strategy and expected financial and operational results may
constitute forward-looking statements. Forward-looking statements
generally can be identified by the use of terminology such as
“believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,”
“seek,” “will,” “may,” “should,” “predict,” “project,” “potential,”
“continue” or the negatives of these terms or variations of them or
similar expressions. These statements are based on certain
assumptions that we have made in light of our experience in the
industry as well as our perceptions of historical trends, current
conditions, expected future developments and other factors we
believe are appropriate in these circumstances. 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, such as our ability to successfully execute our growth
strategy, including through organic growth and the completion of
acquisitions, effective integration of the companies we acquire,
unexpected costs of acquisitions and dispositions, the possibility
that expected cost synergies may not materialize as expected, the
failure of Aveanna or the companies we acquire to perform as
expected, estimation inaccuracies in revenue recognition, our
ability to drive margin leverage through lower costs, unexpected
increases in SG&A and other expenses, changes in reimbursement,
changes in government regulations, changes in Aveanna’s
relationships with referral sources, increased competition for
Aveanna’s services or wage inflation, changes in the interpretation
of government regulations or discretionary determinations made by
government officials, uncertainties regarding the outcome of rate
discussions with managed care organizations and our ability to
effectively collect our cash from these organizations, our ability
to effectively bill and collect under new Electronic Visit
Verification regulations, changes in tax rates, the impact of
adverse weather, the impact to our business operations,
reimbursements and patient population were the COVID-19 environment
to worsen, and other risks set forth under the heading “Risk
Factors” in Aveanna‘s Registration Statement on Form S-1, as
amended, filed with the Securities and Exchange Commission and
which was declared effective on April 28, 2021, which is available
at www.sec.gov. In addition, these forward-looking statements
necessarily depend upon assumptions, estimates and dates that may
prove to be incorrect or imprecise. Accordingly, forward-looking
statements included in this press release do not purport to be
predictions of future events or circumstances, and actual results
may differ materially from those expressed by forward-looking
statements. All forward-looking statements speak only as of the
date made, and Aveanna undertakes no obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
Investor Contact
Dave AfsharChief Financial Officerir@aveanna.com
Media ContactKekst CNC
Ross Lovernross.lovern@kekstcnc.com
Thomas Daviestom.davies@kekstcnc.com
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