Pennant closes UnitedHealth, Amedisys deal
The Pennant Group, Inc. (Nasdaq: PNTG) closed on its acquisition of home health, hospice and personal care agencies divested as part of UnitedHealth Group’s (NYSE: UNH) acquisition of Amedisys on Wednesday.
On Thursday, the company announced that it completed the deal, which included 54 locations in Tennessee, Georgia and Alabama, to the tune of $146.5 million. The assets have combined revenues of $189.3 million over the trailing twelve months, according to Pennant.
The deal included four more agencies than the company had initially stated, and it rang in at the higher end of what the company had anticipated spending. In August, Pennant’s leaders announced that they expected the deal to include between 38 and 50 agencies and to cost between $113 million and $147 million.
“This marks an exciting new chapter in Pennant’s growth journey,” Brent Guerisoli, Pennant’s CEO, said in a statement. “Entering the Southeast is a strategic move for us, and we do so from a position of strength, building on proven leadership, operational excellence and a clear vision for the future. This acquisition opens the door for emerging leaders in this new region to grow within Pennant’s innovative platform.”
Pennant has previously said that it plans to create a “center of strength” in the Southeast through the deal, seeking to establish a presence in the region similar to its footholds in the Pacific Northwest and California.
The newly-acquired agencies are primarily located in Tennessee, a certificate-of-need state, the company said. Approximately two-thirds of the agencies’ revenues are tied to home health, with one-third tied to hospice.
Eagle, Idaho-based Pennant is the parent company of independently operating home health, hospice and senior living companies operating in 17 states. Robinson & Cole LLP and Paul Hastings LLP advised Pennant on the deal’s legal matters. Truist Securities served as the company’s financial advisor.
“We are pleased to welcome these exceptional teams into the Pennant family,” John Gochnour, Pennant’s chief operating officer, said. “They are among the leading operators in our industries, and their commitment to clinical excellence and deep local ties to the region make this an exciting combination. We look forward to bringing these agencies into our portfolio and bringing the Pennant operating model to the Southeast United States.”
Avenues Home Care acquires As Close As Family
Avenues Home Care has acquired As Close As Family, a non-medical home care provider with nine locations in Alabama.
The deal expands Avenues’ geographic footprint to five states and increases its monthly client base by 30%, Doug Markham, CEO of Avenues, told Home Health Care News.
“The reason that As Close As Family was a great fit is that they got to a point where they said, ‘We’re doing well, we can do better, but we’re at the tips of our skis and we need other resources,’” Markham said. “It was an opportunity for us to find somebody that had similar philosophies about the industry, about caregivers, about clients, and how we could combine and be better as one.”
Avenues’ services include personal care, transition care and specialty services, including help with chronic illnesses, among other services. The company accepts private pay and long-term care insurance, and has veterans assistance (VA) contracts in Texas, Tennessee and Alabama.
As Close As Family offers personal care, respite and other non-medical home care services. Mertz Taggart acted as the exclusive advisor for As Close As Family.
The company’s leadership and caregivers will stay in place, Markham said.
Avenues plans to continue growing in the Southeast through de novo and M&A. Most recently, the provider launched a location in Knoxville, Tennessee.
“I don’t necessarily look for acquisitive or de novo,” Markham said. “I look for opportunities where we can bring the Avenues brand, resources and expertise to fruition, to serve more families, more veterans and individuals.”
Markham described the personal home care landscape as “highly fragmented,” offering a large pipeline of potential acquisitions, but one that can be easily narrowed down based on culture and fit.
Always Best Care opens Florida, North Carolina locations
Franchise home care provider Always Best Care has added four new territories to its roster.
Raleigh-based franchise owner Sanjay Das acquired two new territories and will serve older adults in Chatham, Lee and Moore counties in North Carolina.
“North Carolina is a key growth state for Always Best Care, and Sanjay’s recent expansion demonstrates the strong demand for our services across multiple regions,” Jake Brown, president and CEO of Always Best Care Senior Services, said in a statement. “We’re proud to support Sanjay and his team, who are committed to delivering exceptional care to seniors and their families.”
In Orlando, Florida, husband-and-wife team Blake and Kristin Meyer purchased two neighboring franchise territories to serve the central Florida area.
“Kristin and Blake’s combined entrepreneurial success and corporate leadership experience make them ideally suited to represent Always Best Care in Central Florida,” Brown said in a statement. “We are confident they will make a lasting impact in their communities as they grow with Always Best Care.”
Roseville, California-based Always Best Care Senior Services, offers personal care services through its network of 225 franchise locations in the U.S. and Canada.
FirstLight Home Care opens 300th franchise
Cincinnati, Ohio-based FirstLight Home Care announced a new franchise location in Delaware. The opening marks the company’s 300th location.
“Reaching our 300th location would not have been possible without our dedicated franchise owners and their compassionate care teams who are devoted to our mission: helping people have their best day, every day,” Glee McAnanly, president and CEO at FirstLight Home Care, said in a statement. “This milestone is more than just a number; it is a reflection of our dedication to care and the passion our franchise owners bring to the communities they serve each and every day.”
FirstLight provides companion care, personal care, memory care, respite care and veteran care across 39 states.
The company said it has “no plans of slowing down” its growth trajectory.
“From the moment we began working with FirstLight Home Care, we knew this was a brand that would see unprecedented growth,” Peter Barkman, partner and chief strategy officer at BrandONE, said. “With a people-centric business model and a leadership team that genuinely cares, qualified franchisees are more inclined to invest in the company and introduce the concept to markets that need these services.”
The post Dealbook: Pennant Closes $146.5M Deal For Amedisys, UnitedHealth Assets; Avenues Acquires As Close As Family appeared first on Home Health Care News.
