Almost Family Acquires Nursing Assessment Company for $37 Million
Coming off a year of record revenue, Almost Family (NASDAQ: AFAM) has just snapped up another acquisition in a $37 million deal.
Almost Family, the home health nursing services giant, has acquired Natick, Massachusetts-based Long Term Solutions, Inc. (LTS), one of the largest providers of in-home nursing assessments for the long-term care insurance industry. LTS provides long-term care assessment, planning and support services to its insurance company business partners and also utilizes its national network of nurses and health professionals to provide long-term care coordination services to help develop a plan of care and coordinate in-home care and assisted living community referrals.
LTS was acquired by Almost Family for $20 million in cash, a $6 million note payable plus $11 million of Almost Family common stock, according to a press release. The cash portion of the deal was funded by Almost Family’s revolving credit facility. The acquisition of LTS is expected to increase Almost Family’s earnings per share between $0.20 and $0.25 in 2016.
“LTS has established an industry leadership position that we find very attractive,” William B. Yarmuth, Almost Family chairman and CEO, said in a prepared statement. “In addition to continuing its remarkable growth, we will also look for opportunities to offer its unique capabilities and service offerings to managed care, Medicaid and other payer types, all to further our Senior Advocacy Mission of enabling seniors to stay in their homes as long as possible.”
This is the fourth investment in Almost Family’s HealthCare Innovations Segment since its inception two years ago, according to Yarmuth. The segment was formed with Almost Family’s investment in NavHealth after its acquisition of Imperium Health Management in 2013.
LTS generated about $16 million in revenue from performing over 60,000 in-home assessment visits on behalf of long-term care insurance providers. The co-founders of LTS, Noreen Guanci and Anne Harrington, will remain in their respective roles as CEO and COO, according to a press release.
“As we have listened to our customers’ expressed needs and desires for innovative new ideas, it has become clear that partnering with one of the nation’s largest and most innovative providers of in-home health care services to the elderly was the best strategic fit for us and one of the best ways to offer more and better clinical solutions to our customers,” Guanci and Harrington said in a joint statement. “All of our assessment services are provided in our clients’ homes. So we felt it was critical that the right strategic partner be firmly grounded in client focused principles and focused on maintaining seniors in their homes, while also embracing the innovation necessary to make in-home services be all that they possibly can.”
LTS is not the first acquisition of an assessment company by Almost Family in recent months. Last year marked booming acquisition activity for Almost Family, which invested approximately $150 million and total run-rate revenues of approximately $140 million in a total of six transactions. The company deployed $97 million in home health acquisitions, totaling in $116 million in revenue.
Looking forward, Almost Family also noted that it will “continue to aggressively pursue quality acquisitions of in-home health care services,” according to the press release.