Aveanna Healthcare Completes Acquisition of Comfort Care
Aveanna Healthcare Holdings has completed the acquisition of Comfort Care for $345 million, which is expected to enhance its adult home health and hospice operations. Comfort Care, operating primarily in Alabama and Tennessee, generates around $100 million in annual revenue. This acquisition aligns with Aveanna's strategy to strengthen its presence in demographically attractive markets. Funding for the deal was secured via a $415 million term loan, a $150 million securitization, and cash reserves. The full integration of Comfort Care is planned for 2022.
- Acquisition of Comfort Care enhances Aveanna's home health and hospice segment.
- Comfort Care's annual revenue of approximately $100 million will contribute significantly to Aveanna's earnings.
- The acquisition allows Aveanna to expand operations in Alabama and Tennessee, increasing market presence.
- Acquisition costs of $345 million may strain financial resources.
- Integration challenges could arise during the 2022 transition period.
Expands Aveanna's Adult Home Health and Hospice Operations
ATLANTA, Dec. 13, 2021 (GLOBE NEWSWIRE) -- 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
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
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
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 Afshar
Chief Financial Officer
ir@aveanna.com
Media Contact
Kekst CNC
Ross Lovern
ross.lovern@kekstcnc.com
Thomas Davies
tom.davies@kekstcnc.com
FAQ
What is the acquisition value of Comfort Care by Aveanna Healthcare?
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What are Aveanna's plans for integrating Comfort Care?
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