Illinois hospice provider JourneyCare goes public through $ 85 million acquisitions

Not-for-profit JourneyCare, one of Illinois’ largest hospice providers, announced Wednesday that it will be acquired by listed $ 85 million Addus HomeCare.

JourneyCare, based in Glenview, Illinois, serves about 750 patients a day across a 13-county region of the Chicago metro. The proposed deal, expected to be finalized on February 1, is part of Addus’ broader merger and acquisition strategy, which included last year’s addition of Summit Home Health, also in the Chicago area.

“We have very carefully selected Addus to continue JourneyCare clinical operations, and we believe this combination will benefit our staff, patients and everyone associated with JourneyCare,” JourneyCare CEO Kimberly Hobson said in a statement. “We share the same commitment to providing quality care, and we look forward to working together to complete this important transaction.”

JourneyCare’s spokesman did not respond to requests for comment. Information that the company shared with employees promised that they would retain their current seniority, compensation and benefits under Addus’ ownership. The spokesman said JourneyCare will keep its current name and branding.

JourneyCare also told employees that existing hospice, palliative and pediatric services would not change under the new ownership, although they would eventually transition to Addus’ electronic health record platform.

With headquarters in Frisco, Texas, Addus serves about 44,500 people in 22 states. The company has about 30,000 employees in clinical and administrative positions. It’s been on a shopping spree in recent years, after also adding New Mexico’s Armada Skilled Home Health and Hospice for $ 29 million last year. That comes on top of four acquisitions in 2020 and four in 2019.

Download the Modern Healthcare app to stay informed when industry news breaks out.

Addus’ share price fell more than 2% at Wednesday’s close. The company had $ 33 million in net revenue of $ 765 million in revenue by 2020. Most of its hospice and home health revenue comes from Medicare: 93% and 79%, respectively.

Addus said it planned to fund the acquisition through a combination of cash on hand and its revolving credit facility. Addus CEO Dirk Allison said in a statement that the addition will be nominally increasing in the first year as it works through the integration process.

“Acquisitions are an important part of our growth strategy and we are pleased to start 2022 with a strong tone,” he said. “Our development team continues to do an excellent job of identifying strategic acquisitions, and our strong capital structure supports our ability to continue this successful track record.”

Give a Comment