FRISCO, Texas—Addus HomeCare Corporation (Nasdaq: ADUS), a provider of homecare services, announced a definitive agreement to acquire the entities comprising Tennessee Quality Care, a provider of home health, hospice and private duty nursing services. Tennessee Quality Care serves an average daily census of approximately 1,800 patients through 17 locations covering a service area of more than 50 counties in Tennessee. Addus expects to close the transaction in the third quarter of 2023, following the completion of customary closing conditions. Addus will fund the acquisition through a combination of cash on hand and the company’s revolving credit facility.
“We are pleased to expand our market presence in Tennessee with the addition of the Tennessee Quality Care operations," said Dirk Allison, chairman and chief executive officer of Addus. "This acquisition fits squarely into our growth strategy to leverage our strong personal care presence and add clinical services in key markets. The acquired operations are approximately 70% home health, including private duty nursing and 30% hospice care, expanding our market coverage to all three levels of care in the state. Tennessee is a Certificate of Need state for both home health and hospice care, making entry into the market more difficult, particularly at scale. We are excited to add approximately $40 million in annualized revenues in the state with this acquisition and look forward to further growth and opportunities from our ability to provide all three levels of care."
The acquisition will be an ideal addition to the company, it said, with an established market presence and reputation for quality, compassionate care. With a mutual commitment to maintaining safe and cost-effective homecare services, Allison said Addus is excited to offer patient-centric personal care, home health and hospice services to patients in Tennessee.
“As part of the American Health Partners family, Tennessee Quality Care has played an important role in our continuum of care with the primary goal being to provide the highest quality care and services to our patients," said Michael Bailey, chief executive officer of American Health Partners, the owner of Tennessee Quality Care. "We are pleased with the opportunity to have Tennessee Quality Care join Addus and continue to expand its important work providing quality home health services and premium end-of-life care in the home setting. This combination will benefit everyone associated with Tennessee Quality Care, especially the patients, families and employees. Addus has an excellent reputation in our market area, and we look forward to Tennessee Quality Care joining the Addus family while also continuing the relationship with American Health Partners.”
Allison added, “Acquisitions are an important part of our growth strategy, and we will continue to identify and pursue strategic acquisitions that fit our mission. Addus has a solid record of driving value from our acquired operations with a proven operating model. We are fortunate to have a strong capital structure that supports our acquisition strategy, and we look forward to the additional opportunities ahead for Addus.”
Raymond James served as financial advisor to Addus in this transaction.
