Home health and hospice company Amedisys Inc. will acquire Florida-based Infinity HomeCare and its15 care centers for $63 million.
Infinity, whose headquarters are in Sarasota, Florida, provides care for more than 14,000 patients each year and has more than 600 employees. Infinity generated around $50 million in revenue a year.
The acquisition will expand the Amedisys footprint in Florida, President and Chief Executive Officer Paul Kusserow said. The deal also “sends a strong signal” that Amedisys plans to resume growing through acquisitions in key markets.
In August, Kusserow said Amedisys has compiled a list of more than 200 potential targets for acquisitions, joint ventures and other partnerships. In September, the company announced it has $300 million in credit available to fund those deals. Kusserow’s revamping of the company resulted in moving most of its top executives to Nashville. A name change and a sale of the company’s Baton Rouge headquarters may also lie ahead.
Sheryl R. Skolnick, director of equity research at Mizuho Securities USA, said the Infinity deal could add 5 cents per share to Amedisys’ 2016 earnings.
“The important point to us is that this likely signals that the business is in good enough shape to integrate an acquisition, and that the turnaround is at least on plan in home care,” Skolnick said in a note to investors.
Amedisys reports earnings Thursday. Mizuho expects Amedisys will turn a profit of 33 cents per share on revenue of $315 million. Stock analysts surveyed by Zacks Investment Research have forecast earnings of 34 cents per share.