Encompass Health (NYSE: EHC) is acquiring a Mississippi-based in-home care services provider, Camellia Healthcare, and its affiliated entities.
Camellia Healthcare operates a portfolio of home health, hospice and private duty locations in Mississippi, Alabama, Louisiana and Tennessee, with revenue of approximately $78 million in 2017.
The deal will push Encompass Health, the nation’s fourth largest provider of Medicare-certified skilled services in the country, to become one of the top 25 largest hospice providers in the nation. The company has previously stated it will ramp up its hospice operations, including adding more acquisitions.
Encompass, which is based in Dallas and has 237 home health and hospice operations in 36 states, saw significant growth in its post-acute admissions in 2017. The company expects to continue this growth over the next few years, executives recently stated.
The transaction with Camellia is expected to close in the second quarter of 2018, pending regulatory approval. Encompass Health expects to fund the transaction with cash on hand and borrowings under its revolving credit facility.
“Camellia Healthcare is a widely known and respected name in the home care industry,” April Anthony, CEO of Encompass Health’s home health and hospice business, said. “We welcome the Camellia Healthcare employees to the Encompass Health team.”
Written by Amy Baxter