Addus HomeCare Corporation (Nasdaq: ADUS) is making moves in the world of home care services, as they’ve just dropped the news of their grand acquisition plan. Hold onto your home health hats, folks!
In a definitive agreement, Addus is set to welcome Tennessee Quality Care into its embrace. Tennessee Quality Care, a provider of home health, hospice, and private duty nursing services, is no lightweight. They’re serving a staggering average daily census of about 1,800 patients across a sprawling 17 locations that stretch their caregiving wings over 50 counties in Tennessee. That’s some serious coverage!
So, when’s this union happening? Well, Addus is aiming for a third-quarter touchdown in 2023, but you know the drill – they’ve got to get through those customary closing conditions first.
Now, let’s talk about the financial magic behind this deal. Addus isn’t pulling rabbits out of hats; they’re funding this acquisition with a combo platter of cash on hand and a little help from their revolving credit facility. It’s like they’re using both their wallet and their credit card to make sure this deal goes down smoothly.
Dirk Allison, the Chairman and CEO of Addus, couldn’t contain his excitement, saying, “We are pleased to expand our market presence in Tennessee with the addition of the Tennessee Quality Care operations.” He’s all about growth strategy, and this acquisition fits right into it. With roughly 70% of the acquired operations focused on home health (including private duty nursing) and the rest on hospice care, they’re covering all three levels of care in the state. Plus, Tennessee’s a tough nut to crack when it comes to home health and hospice care, thanks to those Certificate of Need rules. But Addus is ready to roll, adding a cool $40 million in annualized revenues to their Tennessee roster.
And they’re not just in it for the money. They’re all about quality, compassionate care. Michael Bailey, CEO of American Health Partners (the proud parent of Tennessee Quality Care), chimed in, saying, “We are pleased with the opportunity to have Tennessee Quality Care join Addus.” They’re on the same page, folks, looking to provide top-notch home care services to even more patients and families in Tennessee.
So, it’s a match made in home care heaven, with Addus and Tennessee Quality Care ready to join forces and continue their mission of caring for patients, families, and employees alike. It’s like a heartfelt homecoming for Tennessee Quality Care as they step into the Addus family while keeping the warm connection with American Health Partners. The world of home care just got a little cozier.