Gentiva(R) Health Services Completes Acquisition of Major Home Health Provider in CON State of M...( MELVILLE N.Y. March 3 /- Gentiva ...),Health

MELVILLE, N.Y., March 3 /PRNewswire-FirstCall/ -- Gentiva Health Services, Inc. (Nasdaq: GTIV), the nation's leading provider of comprehensive home health services, announced today that it has completed its acquisition of 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, which extends Gentiva's home health operations to 37 states, has been 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 transaction will be accretive to Gentiva's fiscal 2008 results.

"We extend a warm welcome to all Gilbert's employees and anticipate a smooth transition in delivering our services to home health and hospice patients in the state," said Gentiva Chairman and CEO Ron Malone. "We also look forward to the possibility of bringing our groundbreaking specialty home health programs and other Gentiva services to this region as yet another way to differentiate us from the competition and build strong relationships with physicians and payers."

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. 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 hom
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