Beverly Firm To Buy, Expand Hospice USA
by June 7, 2004 12:00 am 123 views
Fort Smith’s Beverly Enterprises Inc. on May 27 announced that its AseraCare Hospice subsidiary signed a definitive agreement to purchase the assets of Hospice USA LLC, a privately held Memphis, Tenn., company that provides hospice services in Mississippi, Alabama and Tennessee. The acquisition is expected to be accretive to Beverly’s pre-tax income by more than $6 million in the first full year. The cash transaction is subject to normal liscense and government approvals, and is expected to close around July 31.
The purchase price is not being disclosed, according to filings with the Securities and Exchange Commission.
Hospice USA operates 18 hospice agencies and has another 16 under development. It averages 900 patients daily, up from 649 during the fourth quarter of 2002 and 356 at year-end 2001. Revenues for Hospice USA are projected to total $37 million for 2004.
AseraCare provides services to 1,100 hospice patients through 25 agencies in 10 states, and another eight locations are being developed during 2004. AseraCare revenues for 2004, excluding this acquisition, are projected to exceed $50 million.
“Hospice USA will give us a strong market position in three states where we operate 29 skilled-nursing facilities and two assisted-living centers but currently have no hospice agencies, and it complements the aggressive internal growth of AseraCare,” said William R. Floyd, Beverly Chairman and CEO.