Almost Family has acquired Long Term Solutions for $37 million, representing 2.3X revenues. Terms of the $37 million deal call for Almost Family to acquire 100 percent of LTS equity for $20 million in cash, a $6 million note payable and $11 million in Almost Family common stock. The cash payment comes from Almost Family’s revolving credit facility.
LTS is expected to add between $0.20 and $0.25 to Almost Family’s earnings per share in 2016. The current EPS is $2.27, according to NASDAQ. In the release, Almost Family CEO and chairman William Yarmuth said the acquisition of LTS represents a “very strategic investment to expand our in-home assessment capabilities and to participate in providing assessments and care coordination to the long-term care insurance industry.”
Last year, LTS generated about $16 million in revenue from performing more than 60,000 in-home assessment visits, the release said. “In addition to continuing its remarkable growth, we will also look for opportunities to offer its unique capabilities and service offerings to managed care, Medicaid and other payer types, all to further our Senior Advocacy Mission of enabling seniors to stay in their homes as long as possible,” Yarmuth said.