FRISCO, Texas–(BUSINESS WIRE)–Jul. 13, 2021– Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, has announced the signing of a definitive agreement to acquire Armada Skilled Home Health of New Mexico, LLC, Armada Hospice of New Mexico, LLC and Armada Hospice of Santa Fe, LLC, (“Armada”) for a cash purchase price of approximately $29.0 million. Based in Albuquerque, New Mexico, Armada currently serves an average daily census of approximately 1,100 patients for home health services and 100 patients for hospice care, with primary coverage across Bernalillo County and surrounding counties. Addus expects to close the transaction on or about August 1, 2021, following completion of all required regulatory approvals, subject to customary closing conditions.
Dirk Allison, Chairman and Chief Executive Officer of Addus HomeCare Corporation, commented, “We believe this acquisition is a great strategic fit for Addus, and we are very pleased to reach an agreement with Armada to expand our market coverage in New Mexico, which is an important and growing market for Addus. This proposed acquisition follows our strategy to grow our clinical services offering in home health and enhances our ability to provide all three levels of home care in New Mexico. We will also benefit from the additional opportunities to provide quality hospice services to more patients. We look forward to working with the experienced operational leadership team and clinical staff at Armada, who share our mission to provide quality, patient-centered care in the home.
“Armada has annualized revenues of approximately $23.0 million, and we expect this transaction to be immediately accretive to our financial results,” said Allison.
Chris Tapia, Chief Executive Officer of Armada, commented, “We believe this proposed acquisition will benefit everyone associated with Armada, especially the patients we serve. Addus has an excellent reputation in our market area, and we look forward to joining the Addus family. We share the same dedication to providing quality home health care services and premium end-of-life care that supports both patients and families. We are excited to leverage the strength of our combined operations.”
Allison added, “Acquisitions continue to be an integral part of our growth strategy at Addus and complement our strong organic growth opportunities. We are focused on transactions that will allow us to enhance our service offerings in each of our operating segments in target markets. We are confident in our ability to drive value from our acquired operations and further strengthen our competitive position.”
About Addus HomeCare
Addus HomeCare is a provider of home care services that primarily include personal care services that assist with activities of daily living, as well as hospice and home health services. Addus HomeCare’s consumers are primarily persons who, without these services, are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Addus HomeCare’s payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals. Addus HomeCare currently provides home care services to approximately 44,000 consumers through 208 locations across 22 states. For more information, please visit www.addus.com.
The M&A market for healthcare companies continues to strengthen in 2021 and ahead of the projected increases in US capital gains taxes. There is unprecedented capital in market, the lowest interest rates in US history and strong acquirer motivations for high quality healthcare companies. Across the continuum of care, buyers and investors are looking for well established, profitable businesses and offering strong valuations and options for management.
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