Addus HomeCare Sells Home Health Division

Publicly traded Addus HomeCare Corp. said that it has sold substantially all of the assets of its home health division to LHC Group Inc. The sale encompasses 19 home health agencies and two hospice agencies in five states. Terms were not released.

PRESS RELEASE

Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home-based social and medical services focused on the elderly dual eligible population, recently announced that it has completed the sale of substantially all of the assets of its home health division to LHC Group, Inc. (NASDAQ: LHCG).

The Braff Group (TBG) served as exclusive merger and acquisition advisor for Addus HomeCare.

The sale encompasses 19 home health agencies and two hospice agencies in five states. Specifically, LHC Group will acquire 100 percent of the assets of the business in Arkansas, South Carolina and Nevada. In Illinois and California, LHC Group will acquire 90 percent of the business, with Addus retaining a 10 percent ownership interest in those locations. The business represents approximately $36.7 million in annual revenues for the twelve month period ended September 30, 2012. Net proceeds from the transaction will be used to pay off outstanding debt and for general corporate purposes.

Mark Heaney, President and CEO of Addus HomeCare said, “The health care landscape is undergoing massive and rapid change as a result of health care reform and the economic imperative that we adopt new and more effective methods for serving the health care needs of those most at-risk. States across the country are moving quickly to implement managed care models to serve over nine million primarily older persons – the dual eligible population – who consume a disproportionately high percentage of our nation’s health care resources. This transaction enables Addus to focus entirely on our home & community business and along with our demonstrated expertise in this sector, positions us to benefit significantly from the enormous opportunity to serve this large and growing, high cost population.”

Added Keith G. Myers, LHC Group’s Chairman and CEO, “It is with great pleasure I welcome Addus’ home health patients and employees into our LHC Group family. We look forward to partnering with local clinicians in these communities to deliver high-quality health care that allows patients to safely remain in the comfort of home. We’re particularly excited to welcome the Addus employees who will become part of LHC Group. Please know we are dedicated to your continued success as we bring our shared purpose – it’s all about helping people – to life in communities across the country.”

“We are extremely proud to have been selected by Addus and their Board of Directors to represent them on this transaction,” commented Mark Kulik, TBG Managing Director who headed up the deal team representing the firm. “The deal was a ‘win-win-win’ as Addus achieved its primary objective to divest the home health business to focus on its core dual-eligible population, retained a 10% interest in the go-forward opportunities for part of the business, and LHC Group was able to establish substantial positions in attractive markets.”

About Addus
Addus is a provider of a broad range of social and medical services in the home. Addus’ services include personal care and assistance with activities of daily living, skilled nursing and rehabilitative therapies, and adult day care. Addus focuses on serving the needs of the elderly dual eligible population. Addus’ consumers are individuals with special needs who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Addus’ payor clients include federal, state and local governmental agencies, commercial insurers and private individuals. For more information, please visit www.addus.com.

About The Braff Group
The Braff Group is the leading merger and acquisition advisory firm specializing in the home health care, hospice, behavioral health and social services, specialty pharmacy, infusion therapy, home medical equipment, and health care staffing market sectors. The firm provides an array of transactional advisory services including sell side only representation, debt and equity recapitalizations, strategic planning, and valuation.