Almost Family IncNASDAQ
Mon, Oct. 17, 11:56 AM
- Thinly traded micro cap Almost Family (AFAM +8.3%) heads north on modestly higher volume in response to its announcement that it has inked a deal with Community Health Systems (CYH -0.3%) for a controlling interest in CHS Home Health, comprised of 74 home health and 15 hospice branch locations in 22 states. CYH's home health and hospice businesses generate $170M and $30M, respectively, in annual revenues. The transaction increases the number of AFAM branches to 340 with an annualized revenue run rate of more than $800M. It will be accretive to EPS in 2017.
- Under the terms of the agreement, AFAM will acquire an 80% interest in CHS Home Health for $128M, subject to a working capital adjustment. The transaction should be completed this quarter.
Aug. 26, 2015, 11:42 AM
- Home healthcare company Amedisys (NASDAQ:AMED) has significantly amped up its acquisition ambitions, putting together a lengthy list of possible targets as it looks to consolidate a fragmented industry.
- New CEO Paul Kusserow says the company is looking at more than 200 candidates for outright M&A as well as joint ventures and partnerships: "We have a lot of firepower, a lot of powder, to go out and buy things on a large scale."
- That's up from 15 prospects in its deal pipeline just six months ago.
- Changes to how the government pays for home healthcare for Medicare patients stands to benefit Amedisys, as weaker performers are driven out, Kusserow says: "There is going to be tremendous consolidation in this industry if these things come close to fruition."
- Amedisys is one of the larger players in the sector, along with Kindred Healthcare (NYSE:KND), Almost Family (NASDAQ:AFAM) and LHC Group (NASDAQ:LHCG).