Transactions: Aveanna Completes Comfort Care Purchase; Interim Announces Third Acquisition of 2021

Aveanna closes $345 million Comfort Care deal

Aveanna Healthcare Holdings Inc. (Nasdaq: AVAH) has completed its acquisition of Comfort Care, an adult home health and hospice company with operations in Alabama and Tennessee. The $345 million deal included $55 million in estimated net tax benefits.

Comfort Care is expected to be fully integrated into Aveanna during 2022, with the majority of the integration process occurring in the first 180 days of next year.

“The addition of Comfort Care advances Aveanna’s strategy of expanding our home health and hospice segment by adding density in demographically attractive markets for skilled adult care services,” Rod Windley, executive chairman of Aveanna, said in a press release. “Comfort Care has an established reputation in Alabama, a growing presence in Tennessee, and a strong management team that will allow us to bring Aveanna’s high standards of care to even more patients and families.”

The Atlanta-based Aveanna delivers a broad range of pediatric and adult health care services – including home health and hospice care – throughout locations in 30 states.

Meanwhile, Comfort Care provides both home health and hospice services to a Medicare patient population through a network of 31 locations in Alabama and Tennessee. Comfort Care generates about $100 million in annual revenue, with roughly 47% of its revenues derived from home health and about 53% derived from hospice.

Interim acquires California location

Interim HealthCare Inc. has purchased one of its locations – Interim HealthCare of Sacramento Hospice – for an undisclosed sum. The move marks Interim’s third acquisition of 2021, according to the company.

First opened 46 years ago, Interim HealthCare of Sacramento Hospice provides end-of-life services throughout the Sacramento, California, area. David Klaeser has been the owner of the franchise since 2007; he will continue leading the business in the role of CEO.

Interim HealthCare Inc. previously acquired Interim HealthCare of the Treasure Coast in November and Interim HealthCare of San Diego in January. The three transactions are part of the franchiser’s movement toward “a hybrid model of both franchises and company-owned branches,” the company noted in a press release.

“2021 was a big year for Interim HealthCare. We are glad to have had the opportunity to purchase not only Interim HealthCare of Sacramento Hospice, but two other highly successful franchises in San Diego, California, and West Palm Beach, Florida,” Jennifer Sheets, president and CEO of Interim, said. “These three acquisitions further Interim HealthCare’s unwavering commitment to meeting individuals in their most preferred care setting – the home.”

The Sunrise, Florida-based Interim HealthCare has over 330 locations servicing the U.S. and Saudi Arabia. Its services include home health, hospice and palliative care, plus pediatric care and health care staffing support.

Graham Healthcare Group buys InTeliCare

Graham Healthcare Group – a provider of home health, hospice and palliative care services – has acquired InTeliCare Health Services for an undisclosed sum. The agreement was finalized on Dec. 15, 2021.

InTeliCare Health Services is a provider of home health services in central Florida, a new state for Graham Healthcare Group. Moving forward, Graham plans to integrate InTeliCare into its “Residential Home Health” division, which delivers post-acute care services to communities in Michigan, Illinois and Pennsylvania.

Graham Healthcare Group is a subsidiary of Graham Holdings Company (NYSE: GHC).

“More than one-fifth of Florida’s population is over 65, and that number continues to grow,” David Curtis, CEO of home health at Graham, said in a statement. “With the baby boomer generation doubling in size and an increase in comorbidities, this is an ideal time for Graham Healthcare Group to begin serving people in the state of Florida in their own homes with high-quality post-acute and end-of-life care.”

The Residential Home Health division expects to retain InTelicare’s workforce.

Nova Leap strikes again

Nova Leap Health Corp. (TSXV: NLH) has completed the acquisition of a home care business with operations in Texas. Neither financial terms of the deal nor the name of the business were disclosed.

“We’re pleased to enter the Texas market,” Chris Dobbin, president and CEO of Nova Leap, said in a statement. “This acquisition complements our existing businesses in Oklahoma and Arkansas. We expect further growth in the South Central region.”

Nova Leap completed the purchase of a South Carolina home care business earlier in December. The company – headquartered in Halifax, Nova Scotia – has a presence in 11 different U.S. states overall.

Paradigm lands HomeCare Connect

The Walnut Creek, California-based Paradigm has acquired HomeCare Connect, a specialty network focused on home health care, durable medical equipment (DME) and related services, with a focus on servicing catastrophic and complex cases.

This acquisition will broaden Paradigm’s specialty network and clinical solution sets while extending its accountable care management model into the home, according to the company.

In addition to its core home health and DME solutions, HomeCare Connect offers post-acute care, home modifications, prosthetics and IV therapy. The company was founded in 2011 by sisters Teresa Williams, Vonesa Wenzel and Cindy Hailey.

“New technologies, aging demographics and infectious disease-related risks are key factors driving increased demand and new opportunities,” Paradigm CEO John Watts said in a press release. “By extending our offerings into the home health market, Paradigm can support this critical aspect of the recovery journey by providing continuity of high-quality, closely managed care to drive better outcomes for the injured [individuals] we serve.”