Established in 1975, Patient Care operates Medicare-certified home health agency locations in three Northeast states. Patient Care is the largest for-profit home health provider in New Jersey serving four densely populated counties; is one of the largest providers in Connecticut; and operates one branch in eastern Pennsylvania. With a total of eight branch locations, Patient Care generated 2007 annual revenues of approximately $47 million. Ray Rasa, Senior Vice President of Patient Care, will join Almost Family as its senior home care manager in the Northeast region.
With this acquisition, Almost Family's annual net revenue run rate surpasses the $200 million mark. The Company noted that it reached the $100 million milestone just 18 months ago. The Patient Care transaction furthers the Company's objective of balancing its geographic coverage. In combination with its existing operations, the Company's Northeast region should generate over $60 million in annual revenues.
The total purchase price for the stock is $45.2 million, subject to a working capital adjustment. Additionally, the Company will assume approximately $1.3 million in capital lease obligations. The transaction will be funded from Almost Family's existing cash and borrowings from its senior secured revolving credit facility. Almost Family expects the transaction to be completed during the third quarter, subject to regulatory approvals. Due to transition, wind down costs and the timing of the close, the acquisition is not expected to contribute significantly to earnings in 2008 but is expected to be accretive to EPS in 2009.
About Almost Family, Inc.
Almost Family, Inc., founded in 1976, is a leading regional provider of
home health nursing services, with branch locations in Florida, Kentucky,
|SOURCE Almost Family, Inc.|
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