National home health, hospice and post-acute care provider LHC Group (NASDAQ: LHCG) announced it has recently closed its previously stated acquisition of Life Care Home Health.
The deal, which was announced in July, entails LHC acquiring 13 home health agencies across six states for $10 million in cash, thus expanding the company’s footprint to 350 locations across 29 states.
The combined service area of the 13 acquired agencies of Life Care Home Health includes 44 counties with an estimated 65 and older population of 2 million in the states of Arizona, Colorado, Massachusetts, Tennessee, Utah and Washington.
Collectively, the agencies produced revenues of approximately $28 million for the trailing 12 months ended in June 2014, with approximately 90% deriving from Medicare.
Due to a different regulatory process and timeline, the acquisition of an additional Life Care Home Health agency in Rhode Island is expected to close later this year, LHC Group stated in a release.
Beginning operations in 1996, Life Care Home Health is a sister company of Life Care Centers of America, Inc., a company that provides nursing home care and long-term health care services, including skilled nursing, assisted living, retirement living communities and home care.
Though LHC Group expects the transaction to have a neutral impact on its 2014 earnings, it does anticipate the deal will be accretive to its 2015 financial performance.
Written by Jason Oliva