Addus HomeCare Announces the Sale of Assets of its Home Health Division to LHC Group

Addus HomeCare Announces the Sale of Assets of its Home Health Division to LHC

PR Newswire

PALATINE, Ill., Feb. 28, 2013

PALATINE, Ill., Feb. 28, 2013 /PRNewswire/ -- Addus HomeCare Corporation
(NASDAQ: ADUS), a provider of home-based social and medical services focused
on the elderly dual eligible population, announced that today the Company
received the purchase price for the previously announced sale of substantially
all of the assets of its home health division to LHC Group, Inc. The closing
will be effective at 12:01 a.m. on March 1, 2013. All conditions to closing
have been satisfied.

The sale encompasses 19 home health agencies and two hospice agencies in five
states. Specifically, LHC Group acquired 100 percent of the assets of the
business in Arkansas, South Carolina and Nevada. In Illinois and California,
LHC Group is acquiring 90 percent of the business and Addus is retaining a 10
percent ownership interest in those locations. The purchase price for the
assets was $20 million in cash. The business represented approximately $36.7
million in annual revenues for the twelve month period ended September 30,
2012. Net proceeds from the transaction will be used to pay off outstanding
debt and for general corporate purposes.

Mark Heaney, President and CEO of Addus HomeCare, said, "We are pleased to
complete the sale of the home health assets and will focus our attention on
our growing home & community business, which benefits from a significant
opportunity by serving a large and growing, high cost elderly dual eligible

As previously reported, Addus expects that the home health division will be
reported as a discontinued operation in its year end 2012 financial results.

Financial and Legal Advisors

The Braff Group acted as financial advisor to the Company. Winston & Strawn
LLP served as legal advisor to the Company.

About Addus

Addus is a provider of a broad range of social and medical services in the
home. Addus' services include personal care and assistance with activities of
daily living, and adult day care. Addus focuses on serving the needs of the
elderly dual eligible population. Addus' consumers are individuals with
special needs who are at risk of hospitalization or institutionalization, such
as the elderly, chronically ill and disabled. Addus' payor clients include
federal, state and local governmental agencies, commercial insurers and
private individuals. For more information, please visit

Forward-Looking Statements

Certain matters discussed in this press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. 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 the expected benefits and costs of dispositions, the
anticipated financial impact of possible transactions, management plans
related to dispositions, the possibility that expected benefits may not
materialize as expected, the failure of the business to perform as expected,
changes in reimbursement, changes in government regulations, changes in Addus
HomeCare's relationships with referral sources, increased competition for
Addus HomeCare's services, changes in the interpretation of government
regulations, the uncertainty regarding the outcome of discussions with managed
care organizations, changes in tax rates and other risks set forth in the Risk
Factors section in Addus HomeCare's Annual Report on Form 10-K filed with the
Securities and Exchange Commission on March 16, 2012, and in Addus HomeCare's
Quarterly Reports on Form 10-Q, filed with the Securities and Exchange
Commission on May 10, 2012, August 9, 2012 and November 1, 2012, each of which
is available at There can be no assurance that the
potential benefits of the sale of the home health division will be realized.
Addus HomeCare undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

Investor Contact:
 Dennis Meulemans
 Chief Financial Officer
 Phone: (847) 303-5300

SOURCE Addus HomeCare Corporation

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