Almost Family (AFAM) Completes $50.5M Acquisition of Willcare Health Care

Almost Family (NASDAQ: AFAM) announced that it has completed the previously announced acquisition of the stock of Willcare Health Care (Willcare). With this acquisition, Almost Family will operate over 230 branches across 15 states and its annual net revenue run rate is expected to approach the $600 million mark.

Company Comments

William B. Yarmuth, Chairman and CEO of Almost Family, Inc., noted, "We are especially pleased to announce the long-awaited closing of this transaction. I want, in particular, to thank the 1,800 employees of Willcare for their patience, trust and dedication in working through the unusually long New York approval period. We are very much looking forward to building on the strong Willcare foundation as we continue our development efforts in the State of New York and elsewhere."

Financial Update

The purchase price for the stock was $50.5 million, and is subject to no further adjustment. The transaction was funded with borrowings on the Company's senior secured revolving credit facility.

Excluding certain non-profitable Connecticut operations which were discontinued during the period, the acquired operations generated total revenues of approximately $29.4 million ($27.5 million of which was in New York), branch contribution of $4.7 million and home office costs of approximately $3.1 million in the six months ended June 2015. The Company expects to realize home office synergies of approximately $2 million on a comparable period basis when integration activities have been completed. The Company expects to incur transaction, transition and wind-down expenses of $1.5 million over the balance of 2015.

In March 2015 the Company closed on the acquisition of Willcare's Ohio subsidiary.

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