[updated] Addus To Acquire Accentcare’s Personal Care Division For $275m 

Addus HomeCare Corporation (Nasdaq: ADUS) has agreed to acquire AccentCare’s personal care division outside of New York for approximately $275 million.

The acquired assets span 10 states and serve an average daily census of about 13,700 clients. It marks Addus’ entry into six new states: Colorado, Georgia, Minnesota, Pennsylvania, Tennessee and Washington.

Chairman and CEO Dirk Allison said in a statement that the deal is expected to add approximately $280 million in annualized personal care revenue, representing a roughly 19% increase to Addus’ revenue base.

“This acquisition continues our growth strategy to leverage our strong personal care experience to build scale in existing markets as well as enter select new markets,” Allison said.

The new assets extend Addus’ existing footprint in Texas, Illinois, California and Arizona.

The deal will also assist Addus’ value-based care goals. The new personal care assets will allow the company to further collaborate with managed care organizations and value-based care partners, according to Allison’s statement.

Laura Tortorella, CEO of AccentCare, called Addus the ideal home for AccentCare’s personal care operations.

“This agreement ensures that our clients will continue to receive outstanding, compassionate care from a team completely focused on their daily needs, allowing for continued growth of the segment under proven leadership,” Tortorella said in a statement. “This is an exciting milestone for our personal care colleagues, and a clear reflection of both the strength of our personal care service line and the exceptional care our teams deliver every day.”

Dallas-based AccentCare provides home health, palliative care, hospice and personal care services from over 280 locations across 30 states and Washington, D.C., serving over 200,000 people annually. The deal does not relate to AccentCare’s home health and hospice operations.

Addus plans to fund the acquisition through a combination of the company’s revolver and cash on hand.

The AccentCare deal follows Addus’ acquisition of HomeCourt Home Care, an Indiana-based personal home care provider. The HomeCourt deal slightly outperformed leadership’s expectations, according to the company’s Q2 earnings call.

On the call, Allison called the company’s appetite for deals “part of what we do.”

The HomeCourt deal, along with the acquisition of a second Indiana-based personal home care provider in Indiana that was pending as of August, exemplifies Addus’ strategy of entering new markets with sizable acquisitions and then expanding its services.

Frisco, Texas-based Addus provides personal care services as well as hospice and home health services through 264 locations across 24 states. The company serves approximately 62,500 people.

In May, Addus leadership said that the company was considering two or three deals similar in size to its $350 million acquisition of Gentiva’s personal care assets.

This story is developing. Check back for updates as they are available.

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