National home care provider LHC Group (NASDAQ: LHCG) is getting even bigger.
The company announced this week it will acquire Deaconess HomeCare and Elk Valley Health Services—two subsidiaries of BioScrip, Inc.—for $60 million. The deal will bolster LHC’s geographical footprint to include 342 locations across 27 states.
Deaconess HomeCare, established in 1969, and Elk Valley Health Services brings together their 121 counties for home health, 30 counties for hospice and 95 counties for community-based services in Mississippi, Tennessee, Kentucky, Illinois and Nebraska.
The acquisition is expected to boost LHC’s earnings by $.05 to $.10 cents per diluted share in 2014. The company’s executives pointed to the longstanding reputation of the companies as positioning them to be acquired by LHC.
“When we founded LHC Group 20 years ago, Deaconess HomeCare already had a strong reputation as one of the nation’s premier providers,” said Keith Myers, LHC Group chairman and CEO. “Joining forces with a provider of this caliber marks a great day for our company.”
Myers pointed to potential future opportunities due to the climate of consolidation across providers.
“As consolidation continues to occur in our industry, we look forward to more opportunities like this to join forces with other high-quality providers who share our values and commitment to excellence,” he said. “We welcome the healthcare professionals at Deaconess HomeCare and Elk Valley Health Services to the LHC Group family and look forward to combining our strengths and partnering with local clinicians to deliver high-quality health care that allows patients to safely remain in the comfort of their homes.”
The deal is expected to close before the end of the first quarter of 2014.
Written by Elizabeth Ecker