NORWALK, Conn.--(BUSINESS WIRE)--After a decline in home health and hospice acquisitions earlier in the year, M&A activity steadied itself in the third and fourth quarters of 2015. There were 12 publicly announced transactions in the fourth quarter, matching the level in the third quarter but well below the fourth quarter of 2014, when there were 20 announced acquisitions. However, when it comes to the dollars spent on these transactions, there was a sharp drop from $273.85 million in the third quarter to $108.7 million. Most transactions are small and many do not have disclosed prices, which makes comparing the periods difficult. In the fourth quarter of 2014, the total disclosed dollar value of the transactions was $2.55 billion, largely based on two very large purchases.
The largest transaction with a disclosed price in the fourth quarter of 2015 was the purchase of Infinity HomeCare by Amedysis, Inc. for $63.0 million. Infinity is based in Sarasota, Florida and had annual revenues of approximately $50.0 million. The second largest acquisition was Almost Family’s purchase of Home Care by Black Stone for $40.0 million. Based in Ohio, Black Stone had revenues of $46.7 million in 2014. “The large, publicly traded home health and hospice providers are just getting bigger in this market, and post-acute providers still search for home health and hospice business in their markets,” stated Lisa Phillips, Editor of the Health Care M&A Report. “With the continued emphasis on home and community-based care, acquisition interest will only grow, as long as reimbursement does not get cut,” continued Ms. Phillips.
All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the Health Care M&A Information Source. For more information, or to order the report, call 800-248-1668. Irving Levin Associates, Inc. was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters, and maintains databases on the health care and senior housing markets.
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