Home health and hospice provider Amedisys Inc. (Nasdaq: AMED) has signed a merger agreement for $63 million with Infinity HomeCare, an agency based in Sarasota, Florida, the company announced Tuesday. The deal could be the first of many for Amedisys after previously indicating it has its sights set on 200 potential acquisition targets.
Under the agreement, Amedisys will assume 100% ownership of Infinity HomeCare, according to a news release. The deal is slated to close on Dec. 31, and Amedisys plans to fund the purchase with both cash on hand and borrowings from its senior secured credit facility, the release states.
Founded in 2006, Infinity HomeCare has 15 care centers in Florida and serves more than 14,000 people each year. The agency generates about $50 million in revenue annually and registered an adjusted EBITDA of $6.4 million over the last 12 months.
“By coming together, Amedisys and Infinity HomeCare will benefit from one another’s expertise, resources and best practices, resulting in even better patient care,” Amedisys President and CEO Paul Kusserow said in a prepared statement. “This acquisition also expands the Amedisys footprint in our key Florida market, aligns with the growth strategy of both our organizations and sends a strong signal to our stakeholders that we plan to resume growth by acquiring high-quality assets in key markets.”
The acquisition announcement comes after Amedisys approved a program that would allow the repurchase of up to $75 million of its outstanding common stock over the next year. Earlier this year, the company also disclosed its plan to move its executive team from Baton Rouge, Louisiana, to Nashville, Tennessee, in an effort to establish stronger relationships with other major health care players and possibly expand into new markets.
Amedisys will provide further information about the deal during the company’s quarterly earnings call Thursday, according to the release.
Written by Kourtney Liepelt