MELVILLE, N.Y., Feb. 5 Gentiva Health Services,Inc. (Nasdaq: GTIV), the nation's leading provider of comprehensive homehealth services, announced today that it has signed a definitive agreement toacquire 100% of the ownership interest in Home Health Care Affiliates, Inc.and certain of its subsidiaries and affiliates (HHCA) for $55 million in cash,subject to post-closing adjustments.
The transaction will be funded from a combination of Gentiva's existingcash balances and borrowings from its revolving credit facility.
HHCA operates home health and hospice agencies in Mississippi under thebrand names of Gilbert's Home Health and Gilbert's Hospice Care. Theacquisition, which would extend Gentiva's operations to 37 states, is expectedto close in the first quarter of 2008.
Annualized 2007 unaudited net revenues for the Gilbert's operations wereapproximately $37 million, of which approximately $33 million related to homehealth services and $4 million to hospice services. Gentiva anticipates thetransaction will be accretive to its fiscal 2008 results and expects toprovide additional information on its upcoming February 14 earnings call. Toaccess the call, please visit http://investors.gentiva.com/events.cfm.
Gilbert's Home Health and Gilbert's Hospice Care, with approximately 500employees and a business mix that is approximately 81% Medicare, deliver theirservices through 14 locations covering 50 of 82 counties in Mississippi, aCertificate of Need state for home health. Gilbert's was founded in 1977 asone of the state's earliest home health operations and is currently one of itslargest.
"This transaction is significant for Gentiva and consistent with ourgrowth strategy," said Chairman and CEO Ron Malone. "It moves us into newterritory, makes us one of the largest home health providers in the CON stateof Mississippi and boosts our competitive position in the southeast region.We anticipate a smooth closing and integration of Gilbert's, and look forwardto welcoming its employees to the Gentiva family."
About Gentiva Health Services, Inc.
Gentiva Health Services, Inc. is the nation's leading provider ofcomprehensive home health and related services. The Company serves patientsacross the United States, through its direct service delivery units or throughCareCentrix(R), which manages home health services for major managed careorganizations. Gentiva is a single source for skilled nursing; physical,occupational, speech and neurorehabilitation services; hospice services;social work; nutrition; disease management education; help with daily livingactivities; respiratory therapy and home medical equipment; infusion therapyservices; and other therapies and services. Gentiva's revenues are generatedfrom federal and state government programs, commercial insurance andindividual consumers. For more information, visit Gentiva's web site,http://www.gentiva.com, and its investor relations section athttp://investors.gentiva.com. GTIV-G
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