Addus Homecare Completes $350 Million Acquisition of Gentiva’s Personal Care Operations
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Addus Homecare, a leading provider of home care services, has successfully finalized a $350 million acquisition of Gentiva’s personal care operations. Gentiva is known for offering hospice, palliative, and personal care services in seven states, including Arizona, Arkansas, California, Missouri, North Carolina, Tennessee, and Texas.
The acquisition was funded by Addus through a combination of cash on hand, proceeds from a recent public offering of common stock, and their existing revolving credit facility.
Impact of the Acquisition
Dirk Allison, Chairman and CEO of Addus, expressed excitement about the expanded market coverage in the seven states, especially in Texas and Missouri, which are new territories for the company. The acquisition positions Addus as the largest provider of personal care services in Texas.
Collaboration between transition teams from both organizations over the past six months has facilitated a seamless integration process. Allison stated, “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.”
Larger Trend in the Industry
Allison anticipates that the acquisition will have a positive impact on Addus’ financial performance, with an expected annualized revenue increase of approximately $280 million. This aligns with the company’s strategic goal of expanding its scale in existing markets and venturing into new territories through further acquisitions.
Looking ahead, Allison emphasized that Addus has the financial resources and flexibility to support their growth strategy beyond 2025.
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.
