Addus HomeCare Completes Acquisition of Personal Care Operations of Gentiva
Addus HomeCare (ADUS) has completed the acquisition of Gentiva's personal care operations, serving over 16,000 consumers daily across seven states: Arizona, Arkansas, California, Missouri, North Carolina, Tennessee, and Texas. The acquisition, adding approximately $280 million in annualized revenues, was funded through cash from a recent public stock offering and existing credit facilities. The deal positions Addus as the largest personal care provider in Texas and expands its market presence significantly. Both companies' transition teams have been collaborating for six months to ensure smooth integration of operations.
Addus HomeCare (ADUS) ha completato l'acquisizione delle operazioni di assistenza personale di Gentiva, servendo oltre 16.000 consumatori quotidianamente in sette stati: Arizona, Arkansas, California, Missouri, Carolina del Nord, Tennessee e Texas. L'acquisizione, che aggiunge circa 280 milioni di dollari in entrate annualizzate, è stata finanziata tramite liquidità da una recente offerta pubblica di azioni e linee di credito esistenti. L'accordo colloca Addus come il più grande fornitore di assistenza personale in Texas e amplia significativamente la sua presenza sul mercato. I team di transizione di entrambe le aziende hanno collaborato per sei mesi per garantire un'integrazione fluida delle operazioni.
Addus HomeCare (ADUS) ha completado la adquisición de las operaciones de atención personal de Gentiva, que atiende a más de 16,000 consumidores diariamente en siete estados: Arizona, Arkansas, California, Missouri, Carolina del Norte, Tennessee y Texas. La adquisición, que agrega aproximadamente $280 millones en ingresos anuales, fue financiada con efectivo de una reciente oferta pública de acciones y facilidades de crédito existentes. El acuerdo posiciona a Addus como el mayor proveedor de atención personal en Texas y expande significativamente su presencia en el mercado. Los equipos de transición de ambas compañías han estado colaborando durante seis meses para asegurar una integración fluida de las operaciones.
Addus HomeCare (ADUS)는 Gentiva의 개인 간호 운영 인수를 완료하였으며, 이는 매일 16,000명 이상의 소비자를 아리조나, 아칸소, 캘리포니아, 미주리, 노스캐롤라이나, 테네시, 텍사스의 7개 주에서 서비스합니다. 이번 인수는 연간 약 2억 8000만 달러의 수익을 추가하며, 최근 공개 주식 공모와 기존 신용 시설을 통해 자금이 조달되었습니다. 이번 거래로 인해 Addus는 텍사스에서 가장 큰 개인 간호 제공업체가 되며 시장 내 입지를 크게 확대하게 됩니다. 두 회사의 전환 팀은 원활한 운영 통합을 보장하기 위해 6개월 동안 협력해왔습니다.
Addus HomeCare (ADUS) a finalisé l'acquisition des opérations de soins personnels de Gentiva, servant plus de 16 000 consommateurs par jour dans sept États : l'Arizona, l'Arkansas, la Californie, le Missouri, la Caroline du Nord, le Tennessee et le Texas. L'acquisition, qui ajoute environ 280 millions de dollars de revenus annuels, a été financée par des liquidités d'une récente offre publique d'actions et des lignes de crédit existantes. Cet accord positionne Addus en tant que plus grand fournisseur de soins personnels au Texas et élargit considérablement sa présence sur le marché. Les équipes de transition des deux entreprises ont collaboré pendant six mois pour assurer une intégration fluide des opérations.
Addus HomeCare (ADUS) hat die Übernahme der persönlichen Pflegeoperationen von Gentiva abgeschlossen, die täglich über 16.000 Verbraucher in sieben Bundesstaaten betreut: Arizona, Arkansas, Kalifornien, Missouri, North Carolina, Tennessee und Texas. Die Übernahme, die etwa 280 Millionen Dollar an jährlichen Einnahmen hinzufügt, wurde durch Bargeld aus einem kürzlichen öffentlichen Aktienangebot und bestehenden Kreditlinien finanziert. Der Deal positioniert Addus als den größten Anbieter persönlicher Pflege in Texas und erweitert erheblich seine Marktpräsenz. Die Übergangsteams beider Unternehmen arbeiten seit sechs Monaten zusammen, um eine reibungslose Integration der Abläufe zu gewährleisten.
- Acquisition adds $280 million in annualized revenues
- Becomes largest personal care provider in Texas
- Expands market coverage to seven states, including two new markets
- Transaction expected to be accretive to financial results
- Serves additional 16,000 consumers per day
- Increased debt utilization through credit facility
- Potential dilution from recent public stock offering
Insights
This strategic acquisition marks a significant expansion for Addus HomeCare, adding
The acquisition brings immediate scale benefits in seven states, particularly valuable in Texas and Missouri as new markets. With over 16,000 daily consumers added, this expansion should drive operational efficiencies and enhance market positioning. The six-month pre-integration planning period suggests a well-structured approach to minimize integration risks.
The transaction's accretive nature to financial results, combined with the company's stated ability to pursue additional acquisitions, indicates strong growth potential and solid capital management. This positions Addus favorably in the expanding home healthcare market, where scale and operational efficiency are important competitive advantages.
The integration of Gentiva's personal care operations represents a strategic fit that strengthens Addus's market position in the growing home care sector. The acquisition's scale - serving 16,000 additional consumers daily - brings significant operational advantages and potential synergies in staffing, training and service delivery.
The retention of Gentiva's operational leadership team is particularly valuable, as it helps preserve existing client relationships and maintains operational continuity. The geographic expansion into Texas as the largest provider is especially noteworthy, as Texas represents a significant market with favorable demographics for home care services.
The six-month transition planning period indicates thorough operational due diligence, which should facilitate smoother integration and minimize service disruptions. This careful approach to integration is important in maintaining service quality and regulatory compliance across the expanded operation.
Company Adds Annualized Revenues of Approximately
Commenting on the announcement, Dirk Allison, Chairman and Chief Executive Officer of Addus, stated, “We are excited to add the personal care operations of Gentiva, which will significantly expand our market coverage in seven states, including the new markets of
“This important acquisition aligns with our strategy to build scale in existing markets as well as enter select new markets where we can immediately establish a significant personal care presence. Importantly, we also expect this transaction to be accretive to our financial results, adding annualized revenues of approximately
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 27, 2024, and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 5, 2024, which are 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.
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 over 48,500 consumers through 214 locations across 22 states. For more information, please visit www.addus.com.
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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
Source: Addus HomeCare Corporation
FAQ
How much annual revenue will Gentiva's personal care operations add to ADUS?
Which new states did ADUS enter through the Gentiva acquisition?
How many consumers does the acquired Gentiva personal care operation serve daily?
How did ADUS fund the Gentiva personal care operations acquisition?
