Aveanna to Build Resurgent Presence in 2025 M&A Market

Aveanna Healthcare Holdings (Nasdaq: AVAH) plans to rejoin the fray in 2025 when it comes to acquisitions.

The Atlanta-headquartered company has its eyes on targets in the private duty nursing, hospice and home health industries, according to CEO Jeff Shaner. But for this year, their emphasis will likely be on private duty and home health companies. 

“Our five-year [compound annual growth rate (CAGR)] is just under 8% at 7.6%, and we expect this CAGR to continue to accelerate as we identify targeted M&A opportunities, specifically those. We remain focused on our M&A growth in our private duty services segment and our home health and hospice segments,” Shaner said at the JP Morgan Healthcare Conference. “Those are the two segments that we’re primarily focused on for M&A growth in the near future. We also continue to invest in key areas that drive value and growth, such as clinical innovation, data and analytics, recruitment and technology, all of which support efficient growth for Aveanna.”

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The company’s home health and hospice business accounts for about 11% of its revenue, Shaner said at the conference.

Aveanna provides adult and pediatric health care across 33 states, offering private duty, medical solutions, as well as home health and hospice services. The company saw a 6.5% year-over-year increase in revenue, which reached $509 million during the third quarter.

In Q3 2024, its home health and hospice segment revenue reached $54.14 million, a 2.2% year-over-year boost. The growth was offset in part by a 4.3% dip in the segment’s total admissions compared to the same period last year. Also, propelling Aveanna’s growth was a $24.8 million rise in private duty revenue and a $5.05 million bump in medical solutions dollars. 

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When it comes to acquisitions, the company focuses on acquiring smaller assets in areas adjacent to its existing geographic footprint, which is concentrated largely in the Midwest and Southwest.

“We can execute on M&A in this business, primarily home health versus hospice, but certainly we are open and looking for M&A opportunities within our capital structure here,” Shaner said.

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