LHC Group Signs Definitive Agreement to Acquire Home Health Business From
LAFAYETTE, La., Feb. 7, 2013 (GLOBE NEWSWIRE) -- LHC Group Inc. (Nasdaq:LHCG)
has entered into a definitive agreement to acquire the home health service
line of Addus HomeCare Corp. (Nasdaq:ADUS). The transaction is expected to
close on or about February 28, 2013.
The acquisition will encompass 19 home health agencies and two hospice
agencies in five states. When the transaction is complete, LHC Group, a
national provider of post-acute care, will operate more than 300 locations in
23 states nationwide.
Specifically, LHC Group will acquire 100 percent of the assets of three home
health agencies in Arkansas, one home health agency and two hospice agencies
in South Carolina and one home health agency in Nevada. The company will
acquire 90 percent of the assets of eight home health agencies in Illinois and
six in California, with Addus retaining a 10 percent ownership interest in
those locations. Both Arkansas and South Carolina are certificate of need
The estimated 65 and older population in the acquired service area totals 2.6
million. Annual revenue is approximately $36.7 million. Purchase price for the
transaction is $20 million.
"It is with great pleasure I welcome Addus' home health patients and employees
into our LHC Group family," said Keith G. Myers, LHC Group's chairman and CEO.
"We look forward to partnering with local clinicians in these communities to
deliver high-quality health care that allows patients to safely remain in the
comfort of home.
"We're particularly excited to welcome the Addus employees who will become
part of LHC Group. Please know we are dedicated to your continued success as
we bring our shared purpose – it's all about helping people – to life in
communities across the country."
Mark Heaney, president and CEO of Addus HomeCare, said the transaction will
allow the company to focus on its core business of delivering social and
personal care services, including assistance with activities of daily living,
through its core home and community business. Addus in November announced its
intention to explore strategic alternatives relative to its home health
"The healthcare landscape is undergoing massive and rapid change as a result
of healthcare reform and the economic imperative that we adopt new and more
effective methods for serving the healthcare needs of those most at risk,"
Heaney said. "States across the country are moving quickly to implement
managed care models to serve over nine million primarily older persons – the
dual eligible population – who consume a disproportionately high percentage of
our nation's healthcare resources. This transaction enables Addus to focus
entirely on our home and community business and, along with our demonstrated
expertise in this sector, positions us to benefit significantly from the
enormous opportunity to serve this large and growing high-cost population."
The transaction is expected to close on or about February 28, 2013, and is
subject to customary closing conditions. There can be no assurance that the
transaction will be completed.
About LHC Group
LHC Group is a national provider of post-acute care, providing quality,
cost-effective health care to patients within the comfort and privacy of their
home or place of residence. LHC Group provides a comprehensive array of
post-acute healthcare services through home health, hospice and private duty
locations in its home-based division and long-term acute care hospitals in its
Certain matters discussed in this press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995, such as statements about the Company's future financial performance
and the strength of the Company's operations. Such forward-looking statements
may be identified by words such as "continue," "expect," and similar
expressions. Forward-looking statements involve a number of risks and
uncertainties that may cause actual results to differ materially from those
expressed or implied by such forward-looking statements, including changes in
reimbursement, changes in government regulations, changes in LHC Group's
relationships with referral sources, increased competition for LHC Group's
services, increased competition for joint venture and acquisition candidates,
changes in the interpretation of government regulations, and other risks set
forth in Item 1A. Risk Factors in LHC Group's Annual Report on Form 10-K for
the year ended December 31, 2011, filed with the Securities and Exchange
Commission. LHC Group undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
CONTACT: Eric Elliott
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