Emeritus Corporation (NYSE: ESC) (“Emeritus” or the “Company”), the nation’s largest provider of assisted living and memory care services, today announced that the Company has entered into an agreement to purchase Nurse on Call, Inc. (“Nurse on Call” or “NOC”), the largest Medicare-licensed home health care provider in Florida and one of the largest such providers in the United States. Emeritus will pay $102 million in cash for 91% of the equity of NOC’s parent company, and the remaining equity will be owned by certain members of NOC’s management team. The Company will fund the purchase primarily from net proceeds realized from the recently closed sale of joint venture communities.
Through 28 offices serving 47 counties in Florida, NOC’s 1,700 caregivers provide skilled nursing, rehabilitation therapy, medical social services, and other home health assistance to individuals in their homes who may be recovering from surgery, have an acute exacerbation of a chronic illness, or need assistance with the activities of daily living. NOC and its affiliates currently generate annualized revenues of approximately $140 million and earnings before interest, income taxes, depreciation and amortization of approximately $17 million. Emeritus expects that the acquisition of NOC will be immediately accretive to earnings.
“The acquisition of Nurse on Call, a premier home health agency, will add in-home care to our spectrum of senior living services,” explained Granger Cobb, the President and Chief Executive Officer of Emeritus. “NOC will allow us to expand and better coordinate our continuum of post-acute services for our residents, and it will provide Emeritus with a platform for expansion of home health care services throughout our communities and other markets across the United States.
Dale Clift, the Chief Executive Officer of Nurse on Call, said that “By joining forces with Emeritus, NOC becomes a stronger home health care provider that will be well-positioned to expand our services and scale nationally while remaining committed to patient-focused care, high quality, uncompromising integrity, and teamwork. A strong cultural fit is essential for any business partnership, and Emeritus shares the value we place on treating patients like family, with dignity and respect.”
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