LHC Group to Acquire Life Care Home Health for $10 Million
LHC Group, Inc. (NASDAQ:LHCG), a home health, hospice and post-acute health care services provider, announced that it will acquire Life Care Home Health, Inc. and its operating subsidiaries for $10 million in cash.
The acquisition will bring to LHC Group’s portfolio 14 home health agencies across seven states, increasing the company’s geographical footprint to 352 locations in 30 states.
The home health agencies produced revenues of approximately $28.5 million for both the calendar year 2013 and the trailing 12 months, which ended in May 2014, with approximately 90% coming from Medicare.
Life Care Home Health, a sister company of Life Care Centers of America, Inc., has served an estimated 2 million people age 65 and older in Arizona, Colorado, Massachusetts, Rhode Island, Tennessee, Utah and Washington.
The acquisition is expected to close on Sept. 1, 2014, and is anticipated to be accretive to LHC Group’s 2015 earnings with a neutral impact expected for 2014.