Addus HomeCare finalized its purchase of Gentiva's personal care business for $350 million.
Based in Atlanta, Gentiva provides hospice, palliative and personal care services, with more than 590 locations and thousands of clinicians and caregivers across 38 states.
The acquisition relates only to Gentiva's personal care operations, which serve more than 16,000 patients per day in a seven-state service area of Arizona, Arkansas, California, Missouri, North Carolina, Tennessee and Texas.
Addus funded the acquisition through a combination of cash on hand representing a portion of the proceeds of the company’s recent public offering of common stock and its existing revolving credit facility. In June, when the deal was announced, Addus pegged the purchase price at $350 million.
The deal extends Addus' personal care market coverage in seven states, including Texas and Missouri, which are new markets for the company.
"Notably, we will now be the largest provider of personal care services in the state of Texas," Dirk Allison, chairman and CEO of Addus, said in a statement. "We welcome Gentiva’s experienced personal care operational leadership and caregivers to the Addus family. With our shared experience and expertise, we are well positioned to leverage the strength of the combined operations and provide more consumers and their families with safe, cost-effective care in the preferred home setting. Our respective transition teams have been working together over the past six months to facilitate the integration of these operations."
The Gentiva acquisition aligns with Addus' strategy to build scale in existing markets as well as enter select new markets where the company can immediately establish a significant personal care presence, Allison said.
The addition of the Gentiva business will add annualized revenues of approximately $280 million, he said.
Addus 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. The company currently provides home care services to more than 49,000 consumers through 214 locations across 22 states.
Acquisitions continue to be an important part of Addus' growth strategy, Allison said.
"Going forward, we will continue to pursue additional acquisitions that meet our criteria and complement our organic growth initiatives. We have the capital structure and financial flexibility to support our growth strategy in 2025 and beyond,” he said.
In May, Addus announced plans to sell its New York personal care business along with its fiscal intermediary services for the state’s consumer-directed care program. The company will offload its New York operations to HCS-Girling, another home-based care provider.