FRISCO, Texas, Nov. 11, 2020 /PRNewswire/ -- Addus HomeCare
Corporation (NASDAQ: ADUS), a provider of home care services, today
announced the signing of a definitive agreement to acquire Queen
City Hospice, LLC, and its affiliate Miracle City Hospice, LLC
(together "Queen City Hospice") for a cash purchase price of
$192.0 million, representing
$162.8 million of value, net of the
present value of $29.2 million in
estimated tax benefits. Based in Cincinnati, Ohio, Queen City Hospice currently
serves an average daily census of approximately 900 patients across
the state of Ohio, including
patients in the Cincinnati,
Columbus, and Dayton markets. Addus expects to close the
transaction following completion of all required regulatory
approvals, subject to customary closing conditions. Addus will fund
the acquisition through a combination of cash on hand and the
Company's revolving credit facility.
Dirk Allison, President and Chief
Executive Officer of Addus HomeCare Corporation, commented, "We are
very pleased to announce our agreement to acquire Queen City
Hospice, a leading provider of hospice services in the state of
Ohio. This proposed acquisition is
aligned with our strategy of providing hospice and home health care
in markets where we already have a significant personal care
presence. With this acquisition, Ohio becomes the second state where we have
the capability to provide all three levels of home care. We are
excited to have this opportunity to combine a well-respected and
growing hospice operation like Queen City Hospice with our existing
operations.
"We look forward to working with the experienced operational
leadership team at Queen City Hospice and its clinical staff of
over 600 employees. Importantly, we share the same dedication to
patient-centered hospice services that allow consumers to receive
quality, compassionate care in their homes. We believe this
acquisition is a great strategic fit for Addus, and we look forward
to the additional opportunities for growth through our combined
operations. Queen City Hospice has annualized revenues of
approximately $56 million, and we expect this transaction to
be immediately accretive to our financial results," said
Allison.
James Vannelle, Chief Executive
Officer of Queen City Hospice, LLC, commented, "We are excited to
have our team join the Addus family and believe this will be a
great opportunity for everyone associated with Queen City Hospice.
We are mindful of our critical role in meeting the demand for
quality end of life care and supporting the patients and families
we serve. We recognize this same level of commitment in the Addus
team, and we look forward to working together to extend our market
reach so that Queen City Hospice can provide quality hospice
services to more patients."
Mr. Allison added, "Acquisitions have been and remain an
important part of our growth strategy at Addus. This pending
acquisition, along with the other two acquisitions we have closed
in 2020, will bring our total acquired annualized revenues to
approximately $82 million. We have
strategically maintained a strong capital structure, which allows
us to pursue acquisition opportunities as they occur. While our
approach to acquisitions has emphasized appropriate caution and
additional diligence through the early phase of the COVID-19
pandemic, we are now fully engaged in the process of identifying
and pursuing acquisition opportunities in each of our three
operating segments. We have an outstanding development team with a
track record of success and a strong acquisition pipeline, which
together support our ability to extend our market reach and further
strengthen our competitive position."
Raymond James Health Care Banking acted as financial advisor to
Addus.
Forward-Looking Statements
Certain matters discussed in this press release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements may be identified by words such as "preliminary,"
"continue," "expect," and similar expressions. These
forward-looking statements are based on our current expectations
and beliefs concerning future developments and their potential
effect on us. Forward-looking statements involve a number of risks
and uncertainties that may cause actual results to differ
materially from those expressed or implied by such forward-looking
statements, including discretionary determinations by government
officials, the consummation and integration of acquisitions,
anticipated transition to managed care providers, our ability to
successfully execute our growth strategy, unexpected increases in
SG&A and other expenses, expected benefits and unexpected costs
of acquisitions and dispositions, management plans related to
dispositions, the possibility that expected benefits may not
materialize as expected, the failure of the business to perform as
expected, changes in reimbursement, changes in government
regulations, changes in Addus
HomeCare's relationships with referral sources, increased
competition for Addus HomeCare's
services, changes in the interpretation of government regulations,
the uncertainty regarding the outcome of discussions with managed
care organizations, changes in tax rates, the impact of adverse
weather, higher than anticipated costs, lower than anticipated cost
savings, estimation inaccuracies in future revenues, margins,
earnings and growth, whether any anticipated receipt of payments
will materialize, the anticipated impact to our business
operations, reimbursements and patient population due to the recent
COVID-19 global pandemic, caused by a novel strain of the
coronavirus (COVID-19), and other risks set forth in the Risk
Factors section in Addus HomeCare's
Annual Report on Form 10-K filed with the Securities and Exchange
Commission on August 10, 2020, which
is available at www.sec.gov. The financial information described
herein and the periods to which they relate are preliminary
estimates that are subject to change and finalization. There is no
assurance that the final amounts and adjustments will not differ
materially from the amounts described above, or that additional
adjustments will not be identified, the impact of which may be
material. Addus HomeCare undertakes
no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
In addition, these forward-looking statements necessarily depend
upon assumptions, estimates and dates that may be incorrect or
imprecise and involve known and unknown risks, uncertainties and
other factors. Accordingly, any forward-looking statements included
in this press release do not purport to be predictions of future
events or circumstances and may not be realized.
About Addus HomeCare
Addus HomeCare is a provider of
home care services that primarily include personal care services
that assist with activities of daily living, as well as hospice and
home health services. Addus
HomeCare's consumers are primarily persons who, without
these services, are at risk of hospitalization or
institutionalization, such as the elderly, chronically ill and
disabled. Addus HomeCare's payor
clients include federal, state and local governmental agencies,
managed care organizations, commercial insurers and private
individuals. Addus HomeCare
currently provides home care services to approximately 44,000
consumers through 214 locations across 25 states. For more
information, please visit www.addus.com.
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SOURCE Addus HomeCare Corporation