Addus HomeCare Corporation (Nasdaq: ADUS) announced Wednesday it has purchased Kalispell, Montana-based home care provider A Plus Health Care Inc.
Addus completed the deal on July 1, with funding provided by cash on hand. No other financial terms of the transaction were disclosed.
With seven office locations across Montana, A Plus Health Care’s service lines include personal care, private-duty nursing, care management and medical staffing. The company serves 1,200 clients, employing more than 650 people.
Last year, A Plus Health Care’s annual revenue checked in at $10.4 million, according to a press release from Addus announcing the deal.
Frisco, Texas-based Addus provides a mix of personal care, hospice and home health care services. It currently provides those services to about 43,000 individuals across 25 states.
The acquisition expands Addus’s existing Montana footprint, strengthening the company’s COVID-19 response in this market, according to President and CEO Dirk Allison.
“We are very pleased to complete the acquisition of A Plus Health Care, an established provider of personal care services across the state of Montana,” Allison said in the press release. “This acquisition represents another significant step forward in our strategy to acquire providers that strengthen our presence in our current markets. With the ongoing issues created by the COVID-19 pandemic, Addus serves a critical role in providing personal care services that allow individuals to avoid the risks found in settings outside of their homes.”
Addus currently has two locations in Montana.
News of the deal should come as no surprise to those who have followed the company closely. During Addus’s first-quarter 2020 earning call in May, the company leadership discussed its plans to continue executing on its growth strategy.
“Looking ahead, we will continue to execute our growth strategy as a leading provider of home care services,” Allison said during the call. “In addition to organic growth opportunities, we have a solid pipeline of potential acquisitions.”
During the call, Addus leadership stressed the importance of approaching potential deals with an increased sense of caution and diligence amid the COVID-19 emergency.
In 2019, Addus completed four acquisitions, which included total annualized revenue of approximately $130 million.
During the May earnings call, Addus leadership mentioned that the company’s COVID-19 patient volume was relatively low. However, the company expected volume to increase moving forward, a scenario likely playing out as the nation now experiences record numbers of new cases in some states.
Addus’s COVID-19 case volume is evenly split between its home health and personal care service lines, the company previously noted.
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