Addus HomeCare Corp. of Texas today announced it has acquired the assets of Southfield’s Arcadia Home Care and Staffing. Addus closed the transaction on April 1 for $18.5 million, with funding from the delayed draw term loan portion of its credit facility.
Arcadia provides home care services to about 2,300 consumers through 26 offices in 10 states. Its 2017 revenue was $47.4 million.
"We are pleased to announce this transaction, which strengthens our presence in eight states in which we currently operate, including a number of our most attractive markets,” says Dirk Allison, president and CEO of Addus. “In addition to these states, which include Arizona, California, Michigan, Ohio, Pennsylvania, Tennessee, Virginia, and Washington, the transaction will take us into two new states: Florida and Wisconsin.
"This purchase continues our strategy of acquiring providers that strengthen our presence in our current markets. Along with our pending Ambercare transaction, which we expect to close in our second quarter, this transaction reflects our growing acquisition pipeline, which we expect will continue to help us expand our market share and diversify our client base in targeted markets. With a strong financial position and substantial cash flow from operations, we believe we are well-positioned both to fund our organic growth and produce additional accretive acquisitions during 2018."
Addus provides personal care services that assist daily activities. The company provides home-care services to more than 36,000 consumers through 142 offices in 26 states.