JourneyCare, a not-for-profit organization, one of the largest hospice providers in Illinois, announced on wednesday it is bought by the public company Addus HomeCare for $ 85 million.
JourneyCare, based in Glenview, Illinois, serves approximately 750 patients per day in 13 counties in the Chicago metro area. The proposed deal, which is expected to close on February 1, is part of Addus’ broader M&A strategy, which included the addition of Summit Home Health last year, also in the Chicago area.
“We have very carefully selected Addus to continue the clinical operations of JourneyCare, and we believe this combination will benefit our employees, patients and everyone involved with JourneyCare,” said JourneyCare CEO Kimberly Hobson. “We share the same commitment to providing quality end-of-life care and look forward to working together to complete this important deal.”
A JourneyCare spokesperson did not respond to requests for comment. The information the company shared with employees promised that they would keep their current seniority, compensation and benefits at Addus. The explainer said JourneyCare will retain its current name and brand name.
JourneyCare also told staff that existing hospice, palliative and pediatric services will not change under the new owner, although they will eventually move to the Addus electronic health record platform.
Headquartered in Frisco, Texas, Addus serves approximately 44,500 people in 22 states. The company employs approximately 30,000 people in clinical and administrative positions. In recent years, he has been actively buying, adding to New Mexico Armada Skilled Home Health and Hospice for $ 29 Million last year. That’s more than four acquisitions in 2020 and four in 2019.
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By the close on Wednesday, Addus’ share price had dropped more than 2%. In 2020, the company had net income of $ 33 million and revenues of $ 765 million. Most of her hospice and home health care income comes from Medicare: 93% and 79%, respectively.
Addus said it plans to fund the acquisition with cash and a revolving line of credit. Addus CEO Dirk Ellison said in a statement that the addition will nominally increase over the first year as it works through an integration process.
“Acquisitions are an important part of our growth strategy and we are delighted to have a strong start to 2022,” he said. “Our development team continues to do an outstanding job in identifying strategic acquisitions, and our strong capital structure supports our ability to continue this successful track record.”