Care Advantage announced Tuesday that it has acquired Nova Home Health Care. The acquisition expands Care Advantage’s Northern Virginia footprint — a market that CEO Tim Hanold believes is an important one for current and future growth.
The financial terms of the deal were not disclosed.
“Northern Virginia is one of the more populated areas across the state,” Hanold told Home Health Care News. “We’ve done numerous acquisitions there over a period of time. We continue to build out our density, and also the diversity of both payer source and the communities that we serve within that area. Northern Virginia is part of the Metropolitan D.C. area, and is a very diverse market. We want to make sure that we’re approaching that in a smart and culturally sensitive way.”
Richmond, Virginia-based Care Advantage is a home-based care company that has more than 45 locations throughout Virginia, Maryland, Delaware, Washington, D.C., and North Carolina. The company offers both personal care and home health care services.
On its end, Nova Home Health Care is a personal care company that serves the Medicaid population. The company has ties to a number of different communities that make up the diverse population in the area.
“They have real deep market penetration with the Vietnamese community, as well as the Hispanic and African American communities,” Hanold said. “We really love the overall concentration, know-how and cultural understanding on how to serve these communities.”
Nova Home Health Care was also an attractive acquisition target because of its overall expertise and performance.
“They’re incredibly compassionate and also work in a very smart, professional and effective way,” Hanold said. “We really liked them quite a bit. Ali Abdi, one of the founders, just knows his business. He knows it really well, and you can see that quality matters a lot to this group.”
Abdi, who serves as CEO of Nova Home Health Care, believes that this partnership will allow the company to further accelerate.
“This partnership with Care Advantage positions us with the tools and resources to take our service offering to the next level,” he said in a press statement. “ Care Advantage’s culture felt like a good fit from the beginning – we both bring the same type of care and compassion to the table. I know this is the right direction for Nova Home Health Care, and I can’t tell you how enthusiastic I am to see where this takes us.”
In total, Nova Home Health Care is Care Advantage’s 19th acquisition since 2018.
Moving forward, M&A will continue to play a major role in Care Advantage’s growth strategy.
“We have a balanced growth plan between organic and inorganic, but on the M&A side we are going to continue to be quite acquisitive,” Hanold said. “It’s an important part of how we enter into new markets and expand our capabilities in the current markets we serve.”
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