Louisville, Kentucky-based nursing company Almost Family said Thursday it will acquire WillCare Healthcare, a similar provider of home and personal healthcare services, for up to $53 million, depending on stock price. Almost Family said the deal is expected to add at least $72 million in revenue in the coming year.
Almost Family based that figure off of WillCare’s 2014 revenue. That $72 million would now be distributed between its visiting nurse and personal care divisions.
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In total, the deal is expected to boost the company’s revenue to nearly $600 million a year and gives the company a total of 230 branches across 15 states.
Almost Family will fund the deal through its $175 million senior secured revolving credit facility, the company said.
Like most sectors in the healthcare, home health continues to grow, employing nearly 1.3 million across the United States, according to January U.S. Bureau of Labor Statistics numbers.
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The company on Thursday also said it earned $4.7 million in 2014, getting a boost from its 2013 acquisition of SunCrest. Almost Family also said it held labor costs in check in 2014, which helped to pad earnings.
“This combination provides us with a major entry into New York, where $52 million of WillCare's 2014 revenues were generated, and fills an important gap in our Northeast cluster,” Almost Family chief executive William B. Yarmuth said in a statement.
WillCare runs 11 branches in New York in the Buffalo area and in the Hudson Valley.
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