Amedisys to buy IntegriCare home health, hospice assets

Last Updated: 2007-08-06 9:00:43 -0400 (Reuters Health)

BANGALORE (Reuters) - Home-healthcare provider Amedisys Inc. said it agreed to acquire the home health and hospice assets of IntegriCare Inc. for $68 million, giving it entry into eight new U.S states.

Beyond home health, this deal will also provide a moderate expansion to Amedisys' existing hospice business, the company's Chief Executive William Borne said in a statement.

IntegriCare operates 19 home health locations in nine states, including Alaska, Colorado, Idaho, Kansas, New Hampshire, Oregon, Wyoming, and the Certificate of Need states of Washington and West Virginia, Amedisys said.

Hospice services are provided in 11 of the locations, and five of the locations are operated through joint ventures with local hospitals.

The deal, being funded with $56 million in cash and a $12 million note payable over three years, is not expected to add materially to Amedisys' 2007 earnings due to transition related costs and prolonged closing of the West Virginia agencies.

Amedisys expects the deal to close on Sept. 1. However, due to certain regulatory issues, the acquisition of West Virginia agencies are not expected to close until some time in the fourth quarter, the company said.

IntegriCare generated about $54 million in revenue, including over $12 million in hospice revenue, for the 12-month period ended June 30, Amedisys added. (Reporting by Shailesh Kuber in Bangalore)