Addus HomeCare Corp. (Nasdaq: ADUS) has accomplished the acquisition of Gentiva's private care merchandise. The deal will considerably broaden Addus' footprint in sure states and likewise enable the corporate to enter different states for the primary time.

In a press launch, Addus famous that the $350 million deal was financed by means of a mix of money readily available and the corporate's present revolving credit score facility. It is going to add 16,000 customers per day in seven states: Arizona, Arkansas, California, Missouri, North Carolina, Tennessee and Texas. Now that the deal is full, Addus will turn into the biggest supplier of dwelling well being care companies in Texas.

“We’re excited so as to add Gentiva's private care enterprise, which can considerably broaden our market protection in seven states, together with the brand new markets of Texas and Missouri,” Dirk Allison, CEO of Addus, stated in an announcement. “We welcome Gentiva's skilled operational management and private care suppliers to the Addus household. With our shared expertise and experience, we’re properly positioned to leverage the ability of the mixed companies and supply extra customers and their households with protected, cost-effective care within the dwelling atmosphere of their alternative.”

The deal was first introduced in June.

Based mostly in Frisco, Texas, Addus gives dwelling well being, dwelling care and hospice companies to greater than 48,500 customers by means of 214 places in 22 states.

“This essential acquisition aligns with our technique to construct scale in present markets and enter choose new markets the place we will instantly construct a major private care presence,” Allison continued. “Importantly, we additionally anticipate this transaction to be accretive to our monetary outcomes, with annual income of roughly $280 million. Going ahead, we are going to proceed to pursue extra acquisitions that meet our standards and complement our natural progress initiatives. Now we have the capital construction and monetary flexibility to help our progress technique into 2025 and past.”

In the end, Atlanta-based Gentiva provides a variety of dwelling care companies, together with hospice, dwelling care and palliative care. It has greater than 590 places within the US, spanning 38 states.

The corporate was initially based when Humana Inc. (NYSE: HUM) acquired Kindred at House. Humana retained the house care belongings and offered the non-public care and hospice belongings to Clayton, Dubilier & Rice (CD&R). Gentiva is now led by David Causby, the previous CEO of Kindred at House.

Gentiva made a splash final yr when it agreed to accumulate ProMedica's dwelling care and hospice belongings for $710 million.

Now the corporate is focusing extra on its hospice and palliative care efforts.

“One of many issues we're actually making an attempt to construct out is a complicated palliative care mannequin,” Causby stated at House Well being Care Information' FUTURE convention final yr. “Palliative care may be very tough nowadays. It’s primarily based on the physician's schedule Half B. It’s a loss chief. There's simply no good compensation. However we personally really feel that this is likely one of the best wants. One of many largest bills in in the present day's healthcare system are these sufferers who’re within the center bucket and don’t qualify for dwelling care and don’t qualify for hospice. That's actually the place palliative care needs to be.”

With that in thoughts, it made sense to discover a accomplice like Addus to take over the non-public dwelling care assets.

Addus has tried to construct density in markets it likes. Its bread and butter are private care merchandise, however the firm has additionally lately expanded its dwelling care phase.

“Including complementary medical companies will doubtless open up extra alternatives for us within the expert dwelling care house in Texas and another markets the place we at present shouldn’t have medical companies,” Addus CFO Brian Poff stated lately. 'Largely it would [be] private care and residential care. I feel hospice, on the proper value in the correct markets, is one thing we’re nonetheless open to, however most likely a step past private care and residential care as a precedence.”