Sell side advisory services during the acquisition was provided by Stoneridge Partners, Partner Brian Bruenderman.


NEWS RELEASE
CareFinders Total Care Completes Acquisition of Sovereign Home Health of Connecticut | New Jersey’s Leading Home Care Company Expanding to Connecticut

NEWS PROVIDED BY

CareFinders Total Care 

HASBROUCK HEIGHTS, N.J.Aug. 15, 2017 /PRNewswire/ — CareFinders Total Care LLC (“CareFinders”), a leading home healthcare company based in New Jersey, announced that it has completed the acquisition of Sovereign Home Health of Connecticut, LLC (“Sovereign”). Based in Norwalk, Connecticut, Sovereign provides personal care and companion services to its clients in their homes and other facilities. CareFinders, based in Hasbrouck Heights, New Jersey, also provides non-skilled home care services to more than 8000 patients throughout New Jersey with 16 offices in the state.

“The completion of this transaction provides CareFinders with a great platform for growth in the state of Connecticutand creates a strong initial presence for the Company outside of New Jersey,” said Kevin Rogers, Chief Executive Officer of CareFinders. “Sovereign has grown rapidly in the counties it services and we are excited to expand its services throughout the whole state of Connecticut,” said Sanford Hausner, Co Chairman of CareFinders. “We are entering this important market with a well-respected home care provider that has created an impressive record of success.”

“This transaction is consistent with our growth strategy to expand and diversify our business through acquisitions, as well as organic growth, and is representative of the opportunities we see in other states in the Northeast and around the country,” said Linda Mintz, Co Chairman of CareFinders. “We believe the acquisition of Sovereign is the right next step in our growth trajectory to expand throughout the Northeast.”

“It is with great pleasure that we welcome Sovereign’s home health patients and employees into our CareFinders’ family,” said Rogers. “We take our commitment to caregiving very seriously, and look forward to making an even greater impact on the lives of patients that we serve as we move forward in our partnership with Sovereign in the state of Connecticut.”

“The Sovereign team is excited and proud to become part of this great organization,” said Syd Kain, Founder and President of Sovereign. “It is clear that the goals and values of CareFinders are consistent with those of our team, and that the already high quality of care provided to our clients will continue to increase as we transition into the CareFinders family.”

“Our mission as a Total Care company is to provide increasingly expanded state-wide coverage, superior technology, the highest standards of clinical expertise, and best-in-class trained and trusted caregivers throughout the state of Connecticut,” said Hausner.

CareFinders has been in growth mode since the current owners Linda Mintz and Sanford Hausner purchased the company in 2014. The company has completed 14 acquisitions in three and one-half years.

About CareFinders Total Care LLC

CareFinders Total Care LLC is one of the leading in-home care agencies in New Jersey providing home healthcare services to over 8,000 patients throughout the state from 16 offices. CareFinders was founded in 1995 and is licensed and accredited by the Commission on Accreditation on Home Care (CAHC). It employs over 7,500 Certified Home Health Aides and over 80 Registered Nurses and LPNs. For more information, visit www.carefinders.org or contact Linda Mintz, Co-Chairman at 201‐695‐8050.

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SOURCE CareFinders Total Care
http://www.carefinders.org

sell side advisory services during Sovereign Home Health acquisition

Brian Bruenderman

Partner Brian Bruenderman received his Bachelor of Arts degree and Juris Doctor from the University of Louisville. While in college, he purchased several small businesses and credits his later success to that experience. His business background and legal education give him the skills and perspective to successfully negotiate transactions all the way through closing. Specifically, his almost two decades of involvement with strategic buyers gives him a unique insight into how they approach valuation, diligence and negotiation. This combination of education and experience makes him a valuable addition to any transaction.

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Home Health Care Stocks Plummet in July

Home Health Index August 2017 | Stoneridge Partners: After six months largely marked by market gains, home health care companies saw their share values sharply drop in July, according to the latest figures from the Home Health Index by Stoneridge Partners. The index, which tracks the market values of three of the largest publicly traded home health care companies—Almost Family (Nasdaq: AFAM), Amedisys (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG)—dropped 19.57% in July compared to the previous month. The decline was in stark contrast to the S&P 500, which climbed 1.93% in July from June.

The stock market reaction among home health companies was influenced by a significant proposal issued during the month that is expected to have wide-ranging consequences for the sector. Compared to the first half of 2017, home health care stocks were on a hot streak, vastly outpacing the S&P 500.

“Investors in July reacted to the proposed Home Health Groupings Model (HHGM) from the Centers for Medicare & Medicaid Services (CMS),” said Stoneridge President Rich Tinsley. “The proposed rule would overhaul reimbursement payment to Medicare-certified home health care providers and has the potential to cut nearly $1 billion in payments to the industry. The drastic cuts sent investors scurrying from public companies in the sector.”

Amedisys, based in Baton Rouge, Louisiana, saw its share price drop the most amongst its peers during July, with a decline of 24.60%. Year to date, the stock is still up 11.10%, according to the Index. Amedisys CEO Paul Kusserow recently stated in the company’s second quarter 2017 earnings call that while the proposed rule is worrisome, there is still a process to undergo before the rule will be implemented.

Louisville-based Almost Family’s stock also took a big hit in July, dropping 19.79% from June. Almost Family has still seen gains throughout the year, and its share price remains up 12.13% year to date, despite monthly losses.

LHC Group fared the best of its peers in July, though also experienced a significant drop in its share value. The Lafayette, Louisiana-based company’s share price declined 14.71%. Year to date, LHC Group’s stock has risen 26.70%. Despite the proposed rule, the company is moving forward with acquisition and joint venture deals, CEO and chairman Keith G. Myers announced during the company’s most recent quarterly earnings report.

Addus HomeCare (Nasdaq: ADUS), which is not included in the index because so little of its income comes from Medicare, also felt the sting of the proposal, with its share price dropping 8.74%. Addus, which is based in Frisco, Texas, and is known as a personal care services provider, has maintained steady gains throughout the year; its stock is up 10.34% year to date.

Quote Of The Month 

“There should be naloxone available in the Starbucks, because we have people overdosing in the bathrooms of Starbucks,” says Dr. Andrew Kolodny, an addiction specialist with Brandeis University.

Read the Full Article Here: Should The Opioid Crisis Be Declared A National Emergency?

See It To Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these three publicly traded home health companies, all listed on the NASDAQ:

  • Almost Family (AFAM)
  • LHC Group (LHCG)
  • Amedisys (AMED)

This graph compares the percentage of the Home Health Index to the percentage change in the S&P 500 Index for over 14 years, going back to 2002.
[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.
[visualizer id=”8361″]

This graph displays HH Index performance over the past 24 months.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).
[visualizer id=”8362″]

(Home Health Index August 2017 | Stoneridge Partners)

 

Here are the results of the stock prices for the past two years:

Company 7/31/17 1 mos change YTD change 7/31/16 7/31/15
Almost Family 49.45 -19.79% +12.13% 40.30 43.76
Amedisys 47.36 -24.60% +11.10% 54.49 43.63
LHC Group 57.90 -14.71% +26.70% 45.39 40.27
HH Index* 51.57 -19.57% +16.82% 46.73 42.55
S&P 500 2470.30 +1.93% +10.34% 2173.60 2103.84
Addus 33.95 -8.74% -3.14% 18.45 27.14

Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.

 

Enterprise Value (EV)

EV (in M) 7/31/17 7/31/16
Almost Family 837 540
Amedisys 1556 1890
LHC Group 1137 911
HH Index Total 3530 3341
Addus 399 232


Enterprise Value (EV), aka Selling Price, as Percent of Revenue

Company 7/31/17 7/31/16
Almost Family 125% 97%
Amedisys 105% 144%
LHC Group 121% 110%
HH Index Average* 117% 117%
Addus 97% 67%


Multiples of EV/EBITDA

Think of this as selling price as a multiple of EBITDA.

Company 7/31/17 7/31/16
Almost Family 21.30 12.63
Amedisys 18.31 23.64
LHC Group 13.35 11.08
HH Index Average* 17.65 15.78
Addus 12.75 9.68

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company it’s reporting. (Home Health Index August 2017 | Stoneridge Partners)

Recent Transactions From Around The Country

  • Boyne Capital Partners announced the acquisition of AmeriBest Home Care, Inc., a home care provider serving seniors and disabled residents in Pennsylvania.
  • ncgCare, a Richmond-based behavioral healthcare provider, has acquired Appalachian Community Services in North Carolina, a provider of mental health, substance abuse and ID/DD services.
  • Encompass Home Health and Hospice entered the state of Illinois with the acquisition of VNA Healthtrends.
  • Crossroads Treatment Centers has completed its acquisition of Center of HOPE, an opioid treatment program in Myrtle Beach, South Carolina.
  • JourneyPure, a Nashville, Tennessee-based addiction treatment provider has acquired The Center for Professional Excellence, a local provider of addiction and mental health services.
  • BayMark Health Services, Texas-based opioid treatment provider has acquired Valley Alliance Treatment Services, an opioid treatment center in Morgantown, West Virginia.
  • Berks Community Health Center announced they have signed an LOI to acquire All About Children Pediatric Partners in Reading, Pennsylvania.
  • MedEquities Realty Trust announced they have signed a definitive agreement with AAC Holdings to acquire four behavioral health and substance abuse treatment facilities in Las Vegas and Dallas.

Exclusively Listed For Sale By Stoneridge Partners

Do you know of any acquisitions that have taken place?  We are interested in your comments.  At the top of this column is a “Contact Tab” with a section for comments.  These can be sent anonymously and the return email address can be left blank.

Another Cartoon Favorite from the New Yorker

 

Home Health Index August 2017 | Stoneridge Partners

 

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Home Health Index August 2017 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 and toll-free 800-218-3944

Previous editions of this monthly newsletter can be searched for at the bottom of the home page of the Home Health Index. Links to Google Finance: Almost Family | Amedisys | LHC Group

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Stoneridge Partners | 2017 TAHCH 48th Annual Meeting: Stop by booth 120 to talk strategy with Partners Brian Bruenderman, Joe Lynch and Associate Partner Charles Jantzi during the annual meeting of the Texas Association for Home Care & Hospice held Wednesday and Thursday, August 9 – 10, in The Woodlands, TX. This year’s event promises to be big with 400 industry leaders attending and over 40 business exhibiting.

As an association, TAHC&H has championed the collective interests of Texas home care and hospice agencies, organizations, and individual professionals since its founding in 1969. The organization works to give home care and hospice providers a strategic pathway to key state lawmakers and health care regulators. Its mission joins together member organizations and individuals in a shared commitment to every citizen in need of quality, affordable in home services.

Networking, education, and fun are part of the agenda for the 400+ annual meeting attendees which include: owners, C-level executives, administrators, clinical and operational management, as well as, clinical staff of licensed and certified agencies, pediatric providers, private pay agencies, community care providers and hospices. Partner Brian Bruenderman, Associate Partner Charles Jantzi and Partner Joe Lynch will be available for during the annual meeting for confidential consultations. To schedule, call (800) 218-3944 or email [email protected].


Stoneridge Partners | 2017 TAHCH 48th Annual Meeting
More information:
2017 TAHCH 48th Annual Meeting
TAHC&H


Stoneridge Partners is a professional mergers and acquisitions (M&A) advisory firm who works with mid-market home care, hospice and behavioral health companies – exclusively. Our primary focus has been and still is facilitating transactions that not only provide value, but also make sense for you. We know the market and the business exceptionally well and bring this insight to each and every interaction. If you would like to schedule a confidential meeting with a member of our firm, please call (800) 218-3944 or email [email protected].

If you would like a member of our firm to speak at your conference or association, please contact Tina Mackin at (800) 218-3944 or [email protected].

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