M&A and Financing Newsflash: Addus Finalizes $40 Million Ambercare Deal

Addus Completes Purchase of Ambercare

Frisco, Texas-based Addus HomeCare Corporation (Nasdaq: ADUS) announced Tuesday it has completed its deal to buy Ambercare Corporation, Inc., a personal care, hospice and home health services provider headquartered in Albuquerque, New Mexico.

Addus provides home care services to more than 36,000 clients through 142 offices in more than two dozen states.

Ambercare currently serves about 2,600 consumers through 15 locations across New Mexico.

The transaction comes one month after Addus’ $18.5 million acquisition of Arcadia Home Care & Staffing, a provider of in-home care services in Michigan. Together, the two recent deals for Addus reflect its growing acquisition pipeline and commitment to expanding in targeted markets.

“We are pleased to complete this transaction, which is consistent with the central elements of our acquisition strategy,” said Addus CEO and President Dirk Allison in the announcement. “It builds on our already strong presence in New Mexico to give us market leading positions…”

Addus funded the $40 million deal for Ambercare through the delayed draw term loan portion of its credit facility. Ambercare reported 2017 revenue of about $57 million.

Stoneridge Partners provided advisory services to Ambercare.

AccentCare Teams Up with Capital One on Lending

Capital One (NYSE: COF) announced last week that it served as administrative agent on a $375 million senior secured unitranche facility for Texas-based AccentCare, Inc., one of the largest for-profit home health care providers in the United States.

The unitranche facility consists of a $250 million loan, a $50 million delayed draw term loan and a $75 million revolving line of credit. Capital One launched its unitranche program in December 2016 with co-investor HPS Investment Partners.

AccentCare operates in more than 150 locations across 11 states, and is a portfolio company of Oak Hill Capital Partners. It will use the facility to refine existing debt, finance future acquisitions and fund general corporate needs.

FirstLight Opens Hawaii Office

Cincinnati-based FirstLight Home Care announced last week that it plans to open its first Hawaii office in Honolulu in July.

The new location will serve area seniors, adults with disabilities, new mothers, patients recovering from surgery and other adults in need of care. Among their duties, FirstLight caregivers typically help with personal hygiene needs, household chores, dementia care and general errands.

FirstLight, which has been in operation since 2010, has a presence in nearly three dozen states and more than 240 individual locations. In 2017, the non-medical home care provider reported a 29% increase in revenue and a 24% increase in location growth.

It plans to add upwards of 60 additional locations in 2018, FirstLight CEO Jeff Bevis previously told Home Health Care News.

The new FirstLight Honolulu location will be owned and operated by Lauri and Scott Topping, Oahu residents.

Adventist Health and St. Joseph Health Form New Joint Operating Company 

California-based providers Adventist Health and St. Joseph Health announced plans last week to merge clinical activities and services through a new joint operating company.

Officials at Adventist Health and St. Joseph are working to complete the proposed agreement—first subject to regulatory review—“sometime later this year,” according to the announcement.

Adventist Health is a faith-based, nonprofit integrated health system that serves more than 75 communicates on the West Coast and Hawaii. Its team includes more than 24,600 employees, 5,000 medical staff physicians and 3,700 volunteers.

In addition to its hospital network, Adventist Health oversees 13 home care agencies and seven hospice agencies.

St. Joseph Health has about 111,000 employees and caregivers who serve in hospitals, clinics and home health settings across seven states.

The agreement will extend across clinics and facilities in Humboldt, Mendocino, Sonoma, Lake, Napa and Solano counties in California, according to the announcement. Plans call for Adventist Health and St. Joseph Health to each retain existing hospital names, licenses, capital assets and employees.

Written by Robert Holly

Photo Credit:

  • Addus Chicago Office: Tim Mullaney for Aging Media Network
Robert Holly

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