MELVILLE, N.Y., Feb. 5 /PRNewswire-FirstCall/ -- Gentiva Health Services, Inc. (Nasdaq: GTIV), the nation's leading provider of comprehensive home health services, announced today that it has signed a definitive agreement to acquire 100% of the ownership interest in Home Health Care Affiliates, Inc. and certain of its subsidiaries and affiliates (HHCA) for $55 million in cash, subject to post-closing adjustments.
The transaction will be funded from a combination of Gentiva's existing cash balances and borrowings from its revolving credit facility.
HHCA operates home health and hospice agencies in Mississippi under the brand names of Gilbert's Home Health and Gilbert's Hospice Care. The acquisition, which would extend Gentiva's operations to 37 states, is expected to close in the first quarter of 2008.
Annualized 2007 unaudited net revenues for the Gilbert's operations were approximately $37 million, of which approximately $33 million related to home health services and $4 million to hospice services. Gentiva anticipates the transaction will be accretive to its fiscal 2008 results and expects to provide additional information on its upcoming February 14 earnings call. To access the call, please visit http://investors.gentiva.com/events.cfm.
Gilbert's Home Health and Gilbert's Hospice Care, with approximately 500 employees and a business mix that is approximately 81% Medicare, deliver their services through 14 locations covering 50 of 82 counties in Mississippi, a Certificate of Need state for home health. Gilbert's was founded in 1977 as one of the state's earliest home health operations and is currently one of its largest.
"This transaction is significant for Gentiva and consistent with our growth strategy," said Chairman and CEO Ron Malone. "It moves us into new territory, makes us one of the largest home health providers in the CON state of Mississippi and boosts our competitive position in the southeast region. We anticipate a smooth closing and integration of Gilbert's, and look forward to welcoming its employees to the Gentiva family."
About Gentiva Health Services, Inc.
Gentiva Health Services, Inc. is the nation's leading provider of comprehensive home health and related services. The Company serves patients across the United States, through its direct service delivery units or through CareCentrix(R), which manages home health services for major managed care organizations. Gentiva is a single source for skilled nursing; physical, occupational, speech and neurorehabilitation services; hospice services; social work; nutrition; disease management education; help with daily living activities; respiratory therapy and home medical equipment; infusion therapy services; and other therapies and services. Gentiva's revenues are generated from federal and state government programs, commercial insurance and individual consumers. For more information, visit Gentiva's web site, http://www.gentiva.com, and its investor relations section at http://investors.gentiva.com. GTIV-G
Certain statements contained in this news release, including, without
limitation, statements containing the words "believes," "anticipates,"
"intends," "expects," "assumes," "trends" and similar expressions,
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are
based upon the Company's current plans, expectations and projections about
future events. However, such statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of the Company to be materially different from
any future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among others: the
Company's ability to successfully execute its growth strategy; the impact
of significant indebtedness on the Company's liquidity and its ability to
meet the requirements of its creditors; general economic and business
conditions; demographic changes; changes in, or failure to comply with,
existing governmental regulations; legislative proposals for healthcare
reform; changes in Medicare and Medicaid reimbursement levels; effects of
competition in the markets in which the Company operates; liability and
other claims asserted against the Company; ability to attract and retain
qualified personnel; availability and terms of capital; loss of significant
contracts or reduction in revenues associated with major payer sources;
ability of customers to pay for services; business disruption due to
implementation of new business systems, or due to natural disasters or
terrorist acts; a material shift in utilization within capitated
agreements; and changes in estimates and judgments associated with critical
accounting policies and estimates. For a detailed discussion of certain of
these and other factors that could cause actual results to differ from
those contained in this news release, please refer to the Company's various
filings with the Securities and Exchange Commission (SEC), including the
"Risk Factors" section contained in the Company's annual report on Form
10-K for the year ended December 31, 2006.
Financial and Investor Contact: John R. Potapchuk
Media Contact: David Fluhrer
|SOURCE Gentiva Health Services, Inc.|
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