Industry News • June 3, 2019
FRISCO, Texas, June 3, 2019 /PRNewswire/ — Addus HomeCare Corporation (NASDAQ: ADUS), a provider of comprehensive home care services, today announced that it has completed the purchase of the assets of VIP Health Care Services, a provider of home care services, headquartered in Richmond Hill, New York, effective June 1, 2019. VIP Health Care Services currently serves approximately 1,250 consumers in all five boroughs of New York City as well as surrounding counties. Addus funded the purchase price of $28.0 million (net of excess cash) through the delayed draw term loan portion of the Company’s credit facility and cash on hand.
Dirk Allison, President and Chief Executive Officer of Addus, commented, “We are very excited that the team at VIP Health Care Services will be joining the Addus organization. This acquisition is an important step to further our strategy of enhancing operations in key market areas where we already have a strong presence. VIP Health Care Services provides personal care coverage throughout the New York City area that complements our South Shore operations on Long Island. With annualized revenues of approximately $50.0 million, we will have combined revenues of over $110.0 million in New York, which is already one of our largest markets. Additionally, with over 1,500 caregivers operating from six locations in the New York metropolitan area, we look forward to the potential growth opportunities in this important region.
“Now that we have completed the purchase of VIP Health Care Services, our development team is continuing to work on identifying other potential acquisition targets, and our pipeline remains strong. We will remain focused on opportunities that will enhance our service offering and further extend our market reach. With a strong financial position and substantial cash flow from operations, we believe we are well positioned to fund and execute additional accretive acquisitions during 2019,” said Mr. Allison.
Daniel Appel, Senior Vice President of VIP Health Care Services, noted, “We are excited to be combining VIP Health Care Services with Addus HomeCare’s South Shore operations. We believe the resulting business, with over 3,000 caregivers and multiple locations throughout the southern New York area, will be a market leader with expanded capacity to deliver the same high quality services that VIP Health Care Services and South Shore have provided for many years.”
This article originally appeared in an article in PR Newswire.