Aveanna Healthcare Holdings (Nasdaq: AVAH) is hungry for acquisitions, but hospice transactions are likely not on the menu.

Aveanna’s expanding hospice and home health business has largely included a focus on organic growth and tuck-ins across its existing geographic markets. Acquisitions could make up a larger portion of its strategy on the near horizon, according to CEO Jeff Shaner. The company has been less active on the M&A front in recent years, taking a cautious approach to growth, he previously indicated.

However, the company is not in the market for hospices due to high valuations in the space compared to other health care sectors like home health or private duty services.

“Home health multiples are mid single digits, literally. You can get a home health deal done right now, probably 5x to 8x,” Shaner said at the Jefferies Healthcare Conference. “We’re not a buyer of hospice. We’re one of the few people in America who are not buying hospices. We don’t love it. We do love hospice. We’re just not at 5x north of what we trade at. Hospice is trading between 12x and 20x.”

The company does not want to exceed 10x multiples in its transactions, Shaner indicated.

Atlanta, Georgia-headquartered Avenna’s geographic footprint spans 34 states. The company provides adult and pediatric hospice, home health private duty nursing and medical solutions, among other services. Its private duty segment accounts for nearly 80% of Aveanna’s revenue.

Aveanna’s overall revenue reached $559.2 million during the first quarter, a 14% year-over-year increase. Its adjusted EBITDA for Q1 was $67.4 million, a 93.1% rise compared to the same period in 2024.

The company expects “accelerated growth” through the remainder of the year, Shaner indicated at the conference. He said he anticipates 16% growth year over year. The company expects a growth rate of 10% to 11% in the long term. In this algorithm, organic growth would represent 5% to 7% of this growth, with M&A accounting for 2% to 4%, he said.

Aveanna’s acquisitions this year have included the purchase of Thrive Skilled Pediatric Care (SPC) in April for an undisclosed amount. Acquiring the pediatric home-based care provider expanded Aveanna’s presence across seven states, two of which were new geographic service regions for the company. The transaction is expected to close in the second quarter and anticipated to enhance Aveanna’s strategic growth plans in home-based care, he indicated.

“With the Thrive deal, to be able offer [Thrive’s former owner] Summit Partners both equity and cash was a great outcome for them and for us; they’re participating in our upside,” Shaner said. “If we could do that again, we would do that again. I would expect Aveanna to be doing one or two of these a year moving forward.”