Addus HomeCare Corporation (Nasdaq: ADUS), a provider of comprehensive in-home social and medical services, announced today the acquisition of the operations and certain assets of Advantage Health Systems, Inc., which provides these services in South Carolina and Georgia.
Under the terms of the transaction, total consideration from Addus to Advantage Health Systems shareholders will be up to $8.34 million including $5.1 million in cash, $1.24 million in stock and up to $2 million in earn out milestones. Advantage Health reported revenues of $13 million in 2009 and was profitable and cash flow positive. Addus expects the acquisition to be accretive to earnings for 2010 in the range of $.02 to $.03. Additional information will be reported on Form 8-K. Management will be discussing the transaction on its previously announced second quarter earnings call scheduled for August 5, 2010.
Advantage Health Systems, doing business as CarePro Health Services, serves approximately 1,200 patients in its five locations in South Carolina and one in Georgia. The company has a strong local presence, offering personal care, private duty, home health and hospice services.
Mark Heaney, President and CEO of Addus Homecare, stated, "The acquisition of Advantage Health Systems offers a very attractive opportunity to expand Addus' services in the Southeast market while further enhancing our geographic and payor diversification. Advantage Health Systems' model of integrated care is consistent with Addus' model with 84 percent of revenues from home & community services and 16 percent from home health services."
Heaney continued, "Advantage Health Systems is a leading provider of social services in South Carolina and holds Certificates of Need (CONs) in two of South Carolina's most populated counties. Advantage, which has provided hospice services since 2009, also recently obtained certification for a statewide hospice operation. Advantage Health Systems is a highly respected provider with an outstanding reputation for quality of care that is the hallmark of Addus HomeCare. We welcome their employees and management to the Addus family."
Paul Mitchell, President and Chief Executive Officer of Advantage Health Systems, remarked, "Addus HomeCare is an excellent partner for Advantage Health Systems' business. We share the same vision for providing the highest quality, integrated home health and home & community care to our patients. This partnership will only strengthen our dedication to providing superior service in the markets in which we operate and we expect this will benefit our company, patients and the communities that we serve."
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