Addus HomeCare to tap revolver for $130 million Hospice Partners buy

By Rebecca Melvin

New York, Aug. 26 – Addus HomeCare Corp. plans to draw upon its revolving credit facility to help fund its acquisition of Hospice Partners of America, LLC for $130 million in cash, representing $118.4 million of value, net of the present value of $11.6 million of estimated tax benefits.

Addus said it has signed a definitive agreement for the purchase.

Hospice Partners is a multi-state provider of hospice services, based in Birmingham, Ala. It serves about 1,000 patients daily on average through 21 locations, with annualized revenue of about $55 million.

Addus president and CEO Dirk Allison said in a news release, “This acquisition, along with the other three acquisitions we have closed in 2019, brings our total acquired annualized revenues to approximately $130.0 million.

“Our development team continues to identify additional opportunities within our strong acquisition pipeline, which we expect will allow us to extend our market reach and further strengthen our competitive position. Furthermore, this acquisition broadens and expands our acquisition pipeline in new markets where Hospice Partners of America operates today.”

Raymond James Health Care Banking acted as financial adviser to Addus.

Addus is a Downers Grove, Ill.-based in-home personal and medical care services company.

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