Addus HomeCare Selling Assets to LHC Group for $20 Million
On Thursday, Addus HomeCare announced that it has entered into a definitive agreement to sell "substantially all" of its home health division's assets to LHC Group for $20 million in cash.
Among the assets being sold are 19 home health agencies and two hospice agencies in five states, with a combined annual revenue of $36.7 million. Addus is holding onto 10% interests in its operations in Illinois and California. The transaction will bump LHC Group's operations to more than 300 locations in 23 states.
The purchase price implies that LHC will be paying about 0.54 times annual sales for the Addus assets, a slight discount to LHC's own valuation of 0.58 times sales. For Addus, the deal will yield enough cash to pay off nearly all of its $22.4 million in debt, and the company says it will use at least some of the cash for this purpose. The transaction is expected to close by Feb. 28.
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