Sep. 3, 2015, 8:00 AM
- LHC Group (NASDAQ:LHCG) acquires Halcyon Hospice LLC for $58.5M in cash. The deal will enable LHC to save $7M in net present value taxes over the next 15 years. It will be dilutive by $0.06 to Q4 earnings, but accretive by $0.15 - 0.20 in 2016. The transaction should close by October 1.
- Halcyon, with ~400 employees, operates 16 hospices across three states. Annual revenues are ~$41M.
- LHC's post-deal hospice business will consist of 53 sites in 12 states with over $110M in annual revenues.
- The company is raising its guidance for 2015 net service revenue to $800M - 815M from $780M - 795M and reaffirms its EPS forecast of $1.70 - 1.80.
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).
Jul. 15, 2014, 7:50 AM
- LHC Group (NASDAQ:LHCG) signs a definitive asset purchase agreement with Life Care Home Health to purchase 14 home health agencies across seven states for $10M in cash. The transaction, which will increase LHC's geographical footprint to 352 locations across 30 states, is expected to close on September 1, 2014. It will not impact 2014 financial results but will be accretive in 2015.
Jun. 11, 2012, 9:48 AM
LHC Group (LHCG -3.5%) decides to remain independent, ending a strategic review the home health and hospice services provider began last year. LHCG says it may repurchase up to $50M of its outstanding shares with cash on hand or borrowings under debt facilities. TPG Capital reportedly had considered making an offer for the company.| Jun. 11, 2012, 9:48 AM
Mar. 14, 2012, 9:42 AM
P-E firm TPG Capital is considering making an offer for LHC Group (LHCG +3.8%), Reuters reports, as the provider of home health and hospice services reviews its strategic alternatives. LHCG has been hit by a series of setbacks, including reimbursement cuts, federal investigations into billing practices and new Medicare regulations.| Mar. 14, 2012, 9:42 AM