Pennant closes UnitedHealth, Amedisys deal
Pennant Group, Inc. (NASDAQ: PNTG) closed the acquisition of Home Health, Hospice and Personal Care institutions that were sold on Wednesday as part of UnitedHealth Group (NYSE: UNH)'s acquisition of Amedisys.
On Thursday, the company announced it has completed a transaction that includes 54 locations in Tennessee, Georgia and Alabama, and has completed a $146.5 million contract. Pennant said the assets combined revenue of $189.3 million over 12 months.
The deal includes four institutions than the company originally stated, resonating at the limits it had anticipated spending. In August, Pennant leaders announced that they would cost between $113 million and $147 million, hoping to include 38-50 agents in the deal.
“This marks an exciting new chapter in Pennant's growth journey,” Pennant CEO Brent Gerrisorli said in a statement. “To enter the Southeast is a strategic move for us, and we do so from our position of strength and build 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 the Pennant's innovative platform.”
Pennant previously said it plans to create a “center of strength” in the southeast through contracts, seeking to establish its presence in areas similar to the Pacific Northwest and California scaffolding.
The newly acquired agency is primarily located in the Tennessee state certificate, the company said. Approximately two-thirds of agency revenue are linked to home hygiene, and a third is linked to hospice.
Based in Eagle, Idaho, Pennant is the parent company of independent home health, hospice and senior living companies operating in 17 states. Robinson & Cole LLP and Paul Hastings LLP advised the Pennant on the legal issues of this transaction. Truist Securities served as the company's financial advisor.
“We are delighted to welcome these exceptional teams into the Pennant family,” said John Gotchner, Pennant's Chief Operating Officer. “They are one of the leading operators of our industry and their commitment to clinical excellence and deep local connections with the region makes this an exciting combination. We look forward to bringing these institutions into our portfolio and bringing the pennant operating model to the southeastern US.”
Avenues Home Care is as close as your family
Avenues Home Care is as close as family members, a non-healthy home care provider with nine locations in Alabama.
The deal will expand Avenues' geographic footprint to five states and increase its monthly client base by 30%, Avenus CEO Doug Markham told Home Health Care News.
“The reason we were as close as our family is because we got to where they said, 'We're doing well, we can do better, but we're on the ski tips and we need other resources,'” Markham said. “It was an opportunity to find people with similar philosophies about the industry, caregivers, clients, and how we can combine and get better.”
Based in Dallas, Texas, Avenues' services include personal care, transition care and specialist services, including help with chronic illnesses and more. We accept private pay and long-term care insurance and have Veterans Assistance (VA) contracts in Texas, Tennessee and Alabama.
Families provide personal care, respite and other non-medical home care services. Mertz Taggart acted as an advisor as close to his family.
Company leadership and caregivers will stay there, Markham said.
Avenues plans to continue growing in the Southeast through De Novo and M&A. Most recently, the provider has launched a location in Knoxville, Tennessee.
“I'm not necessarily looking for an acquisition or de novo,” Markham said. “I am looking for opportunities to realize my pathways, resources and expertise to serve more families, more veterans and individuals.”
Markham describes the individual's home care situation as “highly fragmented,” providing a large pipeline of potential acquisitions, but can be easily narrowed down based on culture and fit.
Always the best care opens locations in North Carolina, Florida
Franchise Home Care Providers have always added four new territory to their roster, the best care.
Sanjay Dass, owner of the Raleigh-based franchise, will acquire two new territories to serve seniors in Chatham, Lee and Moore counties in North Carolina.
“North Carolina has always been a critical growth state for the best care, and Sanjay's recent expansion shows strong demand for our services in multiple regions,” said Jake Brown, president and CEO of Always Best Care Senior Services, in a statement. “We are proud to support Sanjay and his team, who are committed to providing exceptional care to seniors and their families.”
In Orlando, Florida, husband and wife teams Blake and Christine Meyer purchased two nearby franchise territories to serve the Central Florida area.
“Kristin and Blake's entrepreneurial success and corporate leadership experience are ideally suited to representing the best care in Central Florida,” Brown said in a statement. “We are confident that they will have a lasting impact on their community as they will always grow with the highest care.”
Based in Roseville, California, our always-first-ever Care Senior Services offers personal care services through a network of 225 franchise locations in the US and Canada.
Firstlight Home Care opens its 300th franchise
Firstlight Home Care, based in Cincinnati, Ohio, has announced the location of its new Delaware franchise. The opening marks the company's 300th place.
“Without our dedicated franchise owners and their caring care team dedicated to our mission, we wouldn't have reached our 300th place. Helping people have their best day every day.” “This milestone is more than just a few. It reflects the care and passion that our franchise owners bring to the community they serve every day.”
Firstlight offers companion care, personal care, memory care, respite care and veteran care in 39 states.
The company said it had “no plans to slow down” its growth trajectory.
“From the moment I started working at Firstlight Home Care, I knew it was an unprecedented growth brand,” said Peter Barkman, Brandone's partner and chief strategy officer. “Because of a person-centric business model and a truly caring leadership team, qualified franchisees tend to invest in the company and introduce concepts to markets that require these services.”
