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Frisco-based Addus HomeCare is expanding with a $350 million acquisition

Posted on by darion

Frisco-based Addus HomeCare is expanding its presence in Texas with the $350 million acquisition of a Georgia-based company.

Assisted care specialist Addus HomeCare Corp. is expected to add approximately $280 million to annual revenue with its acquisition of the personal care division of Atlanta-based hospice group Gentiva. Texas will represent more than 80% of that total, according to Addus CEO Dirk Allison.

“This will allow us to cover largely statewide personal care costs,” Allison said. “We will continue to expand this coverage as we see bugs that may need it, but this covers most major markets.”

Personal care services include non-clinical assistance with activities of daily living, including but not limited to dressing, bathing and preparing meals. Allison said there is a “much needed and growing market” for such services.

“In Texas, we don’t have access to home health care right now,” he said. “We have a hospice in the southern part of the state, but this was just a way for us to add to the growth in non-clinical services that we wanted to bring to Texas.”

An estimated 31% of Texans are 50 or older — AARP’s definition of an “older adult” — according to data from the 2022 Annual American Community Survey. According to the Census Bureau, the nation’s population of people over the age of 65 continues to grow.

Gentiva is a hospice and personal care company backed by Humana Inc. Its personal care services division currently serves more than 16,000 patients a day in states including Texas, Arkansas and Missouri, the company said.

Over the past several years, Addus HomeCare has continued to grow through acquisitions, including a Birmingham, Alabama-based hospice company that served 1,000 patients per day in 2019 and another Ohio-based hospice company in 2020. The acquisitions are a key part of Addus’ growth strategy — Allison previously told The Dallas Morning News that the company added $82 million across three deals in 2020. The company’s net services revenue grew 11.6% year-over-year last quarter, according to results released last month.

Elderly and disabled Texans who want to stay in their homes also face low wages for home care, prompting caregivers to quit.

Gentiva has reached out to Addus HomeCare for comment.

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