Late December and early January continue the trend of industry consolidation. HealthSouth’s deal to purchase Encompass Home Health of Dallas became official on January 1st. Other deals that also closed on January 1 include:
Epic Health Services, based in Dallas, TX has purchased New Jersey based Loving Care Agency. Epic provides pediatric home health services in the Southwest and this purchase expands its footprint in the Northeast. Epic was purchased in 2010 by private equity group, Webster Capital, who is based outside of Boston.
Ensign Group, a publicly traded company (ENSG) who owns 140 rehab facilities, nursing homes, and assisted living facilities across the country has purchased Alarys Home Health of Scottsdale, AZ.
Addus Home Care, a publicly traded company (ADUS) out of Chicago purchased Cleveland, OH based Priority Home Health Care. This expands Addus’ reach into Ohio where it previously did not have any provider numbers.
United Methodist Retirement Communities, located in Ann Arbor, MI has purchased a 50% stake in Glacier Hills Home Care. This purchase allows both companies to grow outside of their original service areas.
Encompass Home Health Purchase Details: The $750 million purchase by HealthSouth also sought to retain the people who have made Encompass so valuable. In SEC filings, HealthSouth reported that Encompass senior management has been offered 3 year contracts to stay on with the company. Also, original stock holders of Encompass who continued to hold 16.7% of corporate stock after the initial investment by private equity received $60.75 million in cash. Encompass stock holders also received $64.5 million in stock as part of the deal.