Sell side advisory services during the acquisition was provided by Stoneridge Partners, Partner Ben Bogan and Associate Partner Charles Jantzi.
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Business Provides Personal Care, Hospice and Home Health Services through 15 Locations across New Mexico, Producing Revenue of Approximately $57 Million
FRISCO, Texas, Feb. 28, 2018 /PRNewswire/ — Addus HomeCare Corporation (NASDAQ: ADUS), a provider of comprehensive home care services, today announced the signing of a definitive agreement to purchase Ambercare Corporation, Inc., a provider of personal care, hospice and home health services, headquartered in Albuquerque, New Mexico. Ambercare currently serves approximately 2,600 consumers through 15 locations located across New Mexico and for 2017, generated revenue of approximately $57 million. Addus expects to complete the transaction in the second quarter of 2018 for a purchase price of $40.0 million (net of excess cash), subject to usual closing conditions, with funding through the delayed draw term loan portion of its credit facility.
Dirk Allison, President and Chief Executive Officer of Addus, commented, “We are pleased to announce our agreement to purchase Ambercare, a long-time provider of high quality home care services and the leading hospice provider in the state. With a trailing EBITDA purchase multiple between 7.0x and 8.0x, we expect this transaction to be accretive to our 2018 financial results, as well as significantly expand the scope of services we provide in New Mexico. The completion of this acquisition, along with our August 2017 purchase of Options Home Care, will make Addus New Mexico’s leading provider of both personal care and hospice.
“We are particularly excited to supplement our service offering with hospice services through this acquisition, consistent with our strategy of providing an expanded range of home-based healthcare services. Our management team has deep experience in the hospice industry, and we look forward to welcoming the employees of Ambercare to the Addus family and adding their expertise to our own, as we intend to continue to grow this segment of the business in the future.”
Mary Merrell, Chairwoman of Ambercare, said, “Given the strong reputation of Addus in our market and nationally, they are a natural fit for Ambercare’s customers and staff. We are excited to be joining Addus, and we expect their support systems and expertise will help us remain a leader in hospice, home health and personal care services in our community.”
Mr. Allison added, “This acquisition complements our acquisitions in October and January of two high quality home care providers of services to private pay consumers. These transactions reflect our growing acquisition pipeline, which we expect will continue to help us expand our market share and diversify our client base in targeted markets. With a strong financial position and substantial cash flow from operations, we believe we are well-positioned both to fund our organic growth and execute additional accretive acquisitions during 2018.”
Stoneridge Partners LLC provided exclusive merger and acquisition advisory services to the Seller, Ambercare Corporation, Inc. Stoneridge Partners LLC Partner, Ben Bogan and Associate Partner, Charles Jantzi led the deal team for this transaction. Stoneridge Partners LLC is the leading merger and acquisition advisory firm in home care, hospice and behavioral health. Phone: (800) 218-3944 .