Almost Family, Inc., a national provider of home health care services, today announced it has signed a definitive agreement to acquire the stock of SunCrest HealthCare for $ 75.5 million—the largest acquisition in the company’s history.
SunCrest, a provider of skilled home health and personal care services generated over $ 150 million in revenue in 2012. The company currently operates over 75 branch locations in nine states.
With this acquisition, Almost Family will operate over 240 branches across 14 states and its annual net revenue run rate is expected to approach the $ 500 million mark, the company stated in a release.
The total purchase price of $ 75.5 million for the stock will be funded primarily from Almost Family’s existing cash and borrowings from its senior secured revolving credit facility.
SunCrest operates Medicare-certified home health agencies in nine eastern states. The company is one of the largest home health provider chains in Tennessee with 27 branches generating over $ 60 million in annual revenues.
Additionally, SunCrest is a major provider in Florida with annual revenues over $ 43 million. Combined with Almost Family’s service territory, the two companies service the entire state of Florida with the exception of Miami-Dade and the Keys.
“Almost Family’s industry-leading qualities, in particular its tradition of being an advocate for the needs of its patients, are an excellent match for our patients, employees and referral sources,” said SunCrest CEO Wally Dant. “Combined, Almost Family and SuCrest are well positioned to build upon the strength of our branch networks and expand our market presence.”
The SunCrest transaction will further Almost Family’s goals to expand geographic coverage.
In addition to bringing Almost Family a Southeast cluster that includes 7 branches and $ 11 million in revenue in Georgia, SunCrest looks to significantly increase the company’s presence in Pennsylvania with 7 bracnhes and over $ 14 million in revenues.
The acquisition aligns with Almost Family’s development goals of strengthening its brand’s presence, said the company’s Chairman and CEO William B. Yarmuth.
“We are extremely pleased to announce the combination of SunCrest and Almost Family and to welcome the employees, patients and referral sources of SunCrest to our growing family of home care companies,” said Yarmuth. “The SunCrest brands have long standing franchise value and we intend to continue our practice of maintaining acquired brands in the local markets.”
The company expects the transaction to be completed during the fourth quarter, subject to regulatory approvals and customary closing conditions.
While Almost Family does not expect the acquisition to contribute significantly to earnings in 2013, the purchase ail be accretive to earnings per share in 2014.