LAFAYETTE, La., Feb. 7, 2013 (GLOBE NEWSWIRE) -- LHC Group Inc. (Nasdaq:LHCG) has entered into a definitive agreement to acquire the home health service line of Addus HomeCare Corp. (Nasdaq:ADUS). The transaction is expected to close on or about February 28, 2013.
The acquisition will encompass 19 home health agencies and two hospice agencies in five states. When the transaction is complete, LHC Group, a national provider of post-acute care, will operate more than 300 locations in 23 states nationwide.
Specifically, LHC Group will acquire 100 percent of the assets of three home health agencies in Arkansas, one home health agency and two hospice agencies in South Carolina and one home health agency in Nevada. The company will acquire 90 percent of the assets of eight home health agencies in Illinois and six in California, with Addus retaining a 10 percent ownership interest in those locations. Both Arkansas and South Carolina are certificate of need states.The estimated 65 and older population in the acquired service area totals 2.6 million. Annual revenue is approximately $36.7 million. Purchase price for the transaction is $20 million. "It is with great pleasure I welcome Addus' home health patients and employees into our LHC Group family," said Keith G. Myers, LHC Group's chairman and CEO. "We look forward to partnering with local clinicians in these communities to deliver high-quality health care that allows patients to safely remain in the comfort of home. "We're particularly excited to welcome the Addus employees who will become part of LHC Group. Please know we are dedicated to your continued success as we bring our shared purpose – it's all about helping people – to life in communities across the country." Mark Heaney, president and CEO of Addus HomeCare, said the transaction will allow the company to focus on its core business of delivering social and personal care services, including assistance with activities of daily living, through its core home and community business. Addus in November announced its intention to explore strategic alternatives relative to its home health business.