Addus Homecare Corp announced it has entered into an agreement to purchase Hospice Partners of America (HPA) for $130 million in cash.
Headquartered in Birmingham, Alabama, HPA serves an average of 1,000 patients per day through 21 states and annualized revenue of approximately $55 million.
“This acquisition is consistent with, and supports our strategy of adding hospice services in markets where we already have a personal care presence,” said Dirk Allison, President and Chief Executive Officer of Addus. “Since the acquisition of Ambercare in 2018, we have been looking for additional opportunities to expand our hospice services, and we are delighted to have this opportunity to combine a well-regarded hospice operation like Hospice Partners of America with our existing operations. Importantly, this will also provide a strategic initial entry for Addus into the Texas market, which will provide potential growth opportunities.
The company said it expects the transaction to be immediately accretive to our 2019 financial results and will use its revolver to fund the deal.
“Our development team continues to identify additional opportunities within our strong acquisition pipeline, which we expect will allow us to extend our market reach and further strengthen our competitive position,” added Allison.