Addus HomeCare Acquires AccentCare's Personal Care Division for $275 Million
Addus HomeCare (NASDAQ:ADUS) has agreed to acquire the personal care division of AccentCare for approximately $275 million, a move expected to add around $280 million in annualized revenue. The acquisition expands Addus's presence across ten states and is being funded through its revolver and cash reserves without issuing new shares. This follows strong second-quarter results where net service revenues rose 8% year-over-year to $377.4 million, with adjusted EBITDA increasing by 11.9%. The deal remains subject to regulatory approval but highlights Addus's strategy of disciplined growth through acquisitions and organic expansion in the home care sector. Personal care services grew organically at a rate supported by state-mandated rate increases, while hospice care saw even faster growth. However, concerns remain about integrating such a large acquisition without overleveraging or diluting operational efficiency. The company's balance sheet currently carries $64.3 million in debt and has sufficient cash flow to fund the deal without significant strain. Nonetheless, future rate increases are uncertain, and home health services—Addus’s smallest segment—are less developed compared to personal care and hospice.
Tickers: $ADUS
Topics: Acquisition Strategy Capital Allocation Healthcare Services Home Care