PALATINE, Ill., Feb. 28, 2013 /PRNewswire/ -- Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home-based social and medical services focused on the elderly dual eligible population, announced that today the Company received the purchase price for the previously announced sale of substantially all of the assets of its home health division to LHC Group, Inc. The closing will be effective at 12:01 a.m. on March 1, 2013. All conditions to closing have been satisfied.
The sale encompasses 19 home health agencies and two hospice agencies in five states. Specifically, LHC Group acquired 100 percent of the assets of the business in Arkansas, South Carolina and Nevada. In Illinois and California, LHC Group is acquiring 90 percent of the business and Addus is retaining a 10 percent ownership interest in those locations. The purchase price for the assets was $20 million in cash. The business represented approximately $36.7 million in annual revenues for the twelve month period ended September 30, 2012. Net proceeds from the transaction will be used to pay off outstanding debt and for general corporate purposes.
Mark Heaney, President and CEO of Addus HomeCare, said, "We are pleased to complete the sale of the home health assets and will focus our attention on our growing home & community business, which benefits from a significant opportunity by serving a large and growing, high cost elderly dual eligible population."
As previously reported, Addus expects that the home health division will be reported as a discontinued operation in its year end 2012 financial results.Financial and Legal Advisors The Braff Group acted as financial advisor to the Company. Winston & Strawn LLP served as legal advisor to the Company.