Amedisys (AMED) Announces Agreement to Acquire Compassionate Care Hospice for $340M
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Amedisys, Inc. (NASDAQ: AMED) announced today that it has signed a definitive agreement to acquire Compassionate Care Hospice (“CCH”), a national hospice care provider headquartered in Parsippany, New Jersey. Compassionate Care Hospice, a community-based organization founded in 1993, cares for approximately 3,300 patients daily and employs more than 2,300 hospice professionals in 53 locations across 24 states. The company generates approximately $188 million in annual revenues, with an adjusted EBITDA of $27 million.
Under the terms of the agreement, expected to close by February 1, 2019, Amedisys will acquire 100 percent of the ownership interests in CCH for a fixed price of $340 million, which is inclusive of $50 million in payments related to a tax asset and working capital. Amedisys, currently caring for more than 7,500 hospice patients per day in 22 states, will become the third largest hospice provider in America.
“By joining forces with Compassionate Care Hospice, we at Amedisys are strengthening our hospice family and gaining the privilege to build a team that can serve more patients in more places,” said Amedisys CEO and President Paul Kusserow. “This also demonstrates that we’re delivering on our promise to our shareholders and employees to expand our hospice footprint. I’m proud to welcome these outstanding caregivers into the Amedisys family as we bring together two organizations committed to patients and outstanding clinical quality.”
“In coming together with Amedisys, we’re destined to create a hospice organization that sets a new standard in the industry,” said Compassionate Care Hospice Chief Executive Officer Judy Grey. “Our mission of affirming life during its final stages by providing holistic and compassionate care to patients and their families aligns perfectly with Amedisys’ commitment to honoring life through clinical excellence.”
The transaction adds significant new access to Amedisys’ high-quality, nationwide network of 83 hospice care centers. Post-closing, the combined hospice operations will include 136 care centers in 34 states, with an ADC of approximately 11,000 patients and approximately 5,700 hospice employees.
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