LOUISVILLE, Ky. (Nov. 11, 2013) – Almost Family Inc., a Louisville-based provider of home health nursing services, has signed a definitive agreement to acquire the stock of SunCrest HealthCare for $75.5 million.
SunCrest, a provider of skilled home health and personal care services generated over $150 million in revenue in 2012 and currently operates more than 75 branch locations in nine states. The company is one of the largest home health provider chains in Tennessee, with 27 branches generating more than $60 million in annual revenues. In addition, SunCrest is a major provider in Florida with annual revenues over $43 million and adds the Florida panhandle to Almost Family’s service territory. Combined, the companies service the entire state of Florida with the exception of Miami-Dade County and the Keys. With this acquisition, Almost Family will operate more than 240 branches across 14 states and its annual net revenue run rate is expected to approach the $500 million mark.
Almost Family Chairman and CEO William B. Yarmuth said, “The SunCrest brands have long-standing franchise value and we intend to continue our practice of maintaining acquired brands in the local markets. We believe this transaction is an outstanding fit consistent with our long-stated development goals of building strong brand presence with tight geographic density and operational span of control.”
The SunCrest transaction furthers the Almost Family’s objective of balancing its geographic coverage. In addition to bringing the company a strong Southeast cluster that includes seven branches and $11 million in revenue in Georgia, SunCrest will significantly increase Almost Family’s presence in Pennsylvania, with seven branches and more than $14 million in revenue, and will complement the company’s recent Indiana acquisition with branches in new service territory and its recent Imperium ACO investment with home health service capabilities in Indiana and Illinois. In addition, SunCrest’s Tennessee operations include approximately $16 million of revenue generated in six branches that will be classified in Almost Family’s personal care segment.
Almost Family expects the transaction to be completed during the fourth quarter, subject to regulatory approvals and customary closing conditions.