FRISCO, Texas, Dec. 4, 2020 /PRNewswire/ -- Addus HomeCare
Corporation (NASDAQ: ADUS), a provider of home care services, today
announced that it has completed the acquisition of Queen City
Hospice, LLC, and its affiliate Miracle City Hospice, LLC (together
"Queen City Hospice") for a cash purchase price of $192.0 million, representing $162.8 million of value, net of the present value
of $29.2 million in estimated tax
benefits. Based in Cincinnati,
Ohio, Queen City Hospice currently serves an average daily
census of approximately 900 patients across the state of
Ohio.
Dirk Allison, President and Chief
Executive Officer of Addus HomeCare Corporation, commented, "We are
very pleased to complete the purchase of Queen City Hospice, a
leading provider of hospice services in the state of Ohio. This acquisition further advances our
strategy of providing hospice and home health care in markets where
we already have a significant personal care presence. With this
acquisition, Ohio becomes the
second state where we have the capability to provide all three
levels of home care. We are delighted to welcome the experienced
operational leadership team and a clinical staff of over 600
dedicated employees associated with Queen City Hospice to the Addus
family. We share a common culture focused on compassionate,
patient-centered care, and we look forward to a smooth integration
of our operations. Importantly, we expect this transaction to be
immediately accretive to our financial results.
"On December 1, 2020, we also
completed the acquisition of SunLife Home Care, a personal care
provider located in Tucson,
Arizona, with approximately $2.6
million in annualized revenue. We are pleased to add the
employees associated with SunLife Home Care to our existing
Arizona operations and further
expand our market presence. We have now completed four acquisitions
in 2020, despite the challenges and disruptions related to the
COVID-19 pandemic. Our development team has done an outstanding job
in executing our acquisition strategy, adding total acquired
annualized revenues of approximately $85
million to date this year. With a strong acquisition
pipeline and a solid financial position to support our continued
growth, we look forward to the opportunities ahead for Addus to
extend our market reach and create greater value for our
shareholders," added Allison.
Addus funded the acquisitions through a combination of cash on
hand and the Company's existing revolving credit facility, led by
Capital One, N.A. as administrative agent.
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, the anticipated impact to our business
operations, reimbursements and patient population due to the recent
COVID-19 global pandemic, caused by a novel strain of the
coronavirus (COVID-19), 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 August 10, 2020, 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.
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 45,000
consumers through 215 locations across 23 states. For more
information, please visit www.addus.com.
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SOURCE Addus HomeCare Corporation