Addus to buy AccentCare's personal care unit for $275M, boosting revenue 19%

What's the deal? Addus HomeCare has signed a definitive agreement to acquire the personal care division of AccentCareDealroom has a profile for this one. Try Dealroom → for about $275 million, after customary adjustments. The deal covers AccentCare's personal care operations outside New York and excludes its hospice and home health businesses.

What's the endgame? The acquired operations serve an average daily census of roughly 13,700 customers across a 10-state footprint. Addus, a Nasdaq-listed home care provider, said the deal expands its capabilities in four primary states — Texas, Illinois, California, and Arizona — while adding operations in Colorado, Georgia, Minnesota, Pennsylvania, Tennessee, and Washington.

By the numbers: The transaction is expected to add about $280 million in annualized personal care revenue, a roughly 19% increase to Addus' revenue base, and to be accretive to results. Addus will fund it through its revolver and cash on hand.

Why it matters: Chairman and chief executive officer Dirk Allison said the deal "directly aligns with our strategic growth initiatives" and further establishes Addus as "a leading multi-state scaled, non-franchise home care platform."

What's next? The companies expect to close following regulatory approvals and customary closing conditions. EvercoreDealroom has a profile for this one. Try Dealroom → advised Addus; Guggenheim SecuritiesDealroom has a profile for this one. Try Dealroom → and J.P. MorganDealroom has a profile for this one. Try Dealroom → advised AccentCare.

The signal: Consolidation continues among non-franchise home care operators seeking scale to negotiate with managed care organizations and value-based care partners. For Addus, buying an established multi-state unit deepens its presence in existing markets and opens select new ones in a single move.

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