ADUS stock has exploded higher over the last few weeks after the company announced the acquisition of Summit Home Health.
Addus HomeCare Completes Acquisition of Summit Home Health, LLC in Chicago
On October 4, 2021, Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, announced the acquisition of Summit Home Health, LLC (“Summit”), effective October 1, 2021. The Company funded the transaction with cash on hand. Based in Bolingbrook, Illinois, a suburb of Chicago, Summit currently serves an average daily census of approximately 240 patients for skilled home health services, with primary coverage in the 14 counties in and around Chicago. Summit currently has annualized revenues of approximately $7.0 million.
Dirk Allison, Chairman and Chief Executive Officer of Addus HomeCare Corporation, commented, “We have continued to execute our acquisition strategy in 2021, and we are pleased to welcome Summit as the latest addition to the Addus family. This acquisition advances our goal of adding clinical services in geographic markets where Addus currently has a strong personal care presence and opens further opportunities in value-based care. The greater Chicago area is already one of our largest personal care markets, and we look forward to utilizing the operational base from Summit to expand to other service areas in Illinois. We believe we will realize revenue synergies as we add Summit’s operational leaders and clinical staff to our existing team. Our combined operations will focus on providing quality, patient-centered care in the home to more consumers in Illinois.”
Allison added, “As we have already demonstrated, Addus will continue its strategic focus on acquisitions that will be accretive to our business and complement our strong organic growth opportunities. We continue to have a solid pipeline of potential acquisitions and the financial flexibility to close additional strategic acquisitions and further strengthen our competitive position.”
Addus HomeCare is a provider of home care services that primarily include personal care services that assist with activities of daily living, as well as hospice and home health services. Addus HomeCare’s consumers are primarily persons who, without these services, are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Addus HomeCare’s payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals. Addus HomeCare currently provides home care services to approximately 44,000 consumers through 211 locations across 22 states. For more information, please visit https://www.addus.com
ADUS Stock Technical Analysis
The short term trend is positive, while the long term trend is neutral. So this is evolving in the right direction. ADUS has an average technical rating and it also does not offer a high quality setup at the moment. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when ADUS stock sets up for a good long entry.