Friday, March 16, 2018
Encompass Health Corp., a national leader in post-acute care, today announced it has entered into a definitive agreement to acquire privately owned Camellia Healthcare and affiliated entities. Camellia Healthcare operates a portfolio of home health, hospice and private duty locations in Mississippi, Alabama, Louisiana and Tennessee and generated revenues of approximately $78 million in 2017. The transaction is expected to close in the second quarter of 2018, subject to regulatory approval. Encompass Health expects to fund the transaction with cash on hand and borrowings under its revolving credit facility.
The Camellia Healthcare acquisition enables Encompass Health to leverage its home health and hospice operating platform across key certificate of need states and to strengthen its geographic presence in the Southeastern United States. Upon completion of this transaction, Encompass Health, the fourth largest provider of Medicare-certified skilled services in the country, expects to become one of the top 25 largest hospice providers in the country as its hospice service line continues to exhibit strong growth.
"Camellia Healthcare is a widely known and respected name in the homecare industry. We could not be more proud to have the Payne family choose Encompass Health to continue the legacy of high-quality patient care in the communities Camellia Healthcare serves," said April Anthony, chief executive officer of Encompass Health's home health and hospice business. "We welcome the Camellia Healthcare employees to the Encompass Health team."
The closing of the transaction is subject to certain customary closing conditions and regulatory approvals.
