Addus HomeCare Corp. (Nasdaq: ADUS), one of the nation’s largest personal care services providers, has acquired Arcadia Home Care & Staffing, a Southfield, Michigan-based provider of in-home care services.
Addus, based in Frisco, Texas, acquired Arcadia for the purchase price of $18.5 million, and the transaction closed on April 1. It was funded from Addus’ delayed draw term loan portion of its credit facility.
The transaction brings Addus into two new states—Florida and Wisconsin. Addus provides home care services to more than 36,000 consumers through 142 offices across 26 states.
Arcadia reported revenues of $47.4 million in 2017; the provider cares for roughly 2,300 consumers in 26 offices in 10 states.
“We are pleased to announce this transaction, which strengthens our presence in eight states in which we currently operate, including a number of our most attractive markets,” Dirk Allison, Addus CEO and president, said in a statement. “In addition to these states, which include Arizona, California, Michigan, Ohio, Pennsylvania, Tennessee, Virginia and Washington, the transaction will take us into two new states: Florida and Wisconsin.”
Addus expects the transaction to be accretive to its 2018 financial results, with a trailing EBITDA purchase multiple of 5.5x to 6.5x, according to Allison.
The deal comes after Addus reported record revenues in 2017 and has made moves to acquire more heavily in the hospice sector. It most recently announced it was acquiring Ambercare Corporation, a provider of personal care, hospice and home health care, for $40 million in February.
“This purchase continues our strategy of acquiring providers that strengthen our presence in our current markets,” Allison said. “Along with our pending Ambercare transaction, which we expect to close in our second quarter, this transaction reflects our growing acquisition pipeline, which we expect will continue to help us expand our market share and diversify our client base in targeted markets.”
Written by Amy Baxter