LHC Group Inc., a Lafayette-based home health and hospice company, will acquire Cumming, Georgia-based Halycon Hospice LLC and its 16 facilities for $58.5 million in cash.
Halcyon is one of the largest independent hospice companies in the Southeast. The company employs around 400 people and has facilities in Georgia, Mississippi and South Carolina.
Halcyon’s annual revenue is roughly $41 million. The deal will increase LHC’s hospice segment to 53 locations in 12 states and more than $110 million in annual revenue.
The deal is expected to close around Oct. 1. The acquisition meets two of LHC’s strategic objectives: adding hospice operations in new markets and expanding the hospice footprint in markets where LHC already has home health locations, said Chief Executive Officer Keith G. Myers.
The Halcyon acquisition costs are expected to lower LHC’s fourth-quarter earnings by around 6 cents per share. But the new properties will add an estimated 15 cents to 20 cents per share in 2016.
LHC Group is raising its full year 2015 guidance for net service revenue to a range of $800 million to $815 million from the previous estimate of $780 million to $795 million. The company still expects 2015 earnings per share in the range of $1.70 to $1.80.