Home Health Care & Hospice M&A Rising, According to New M&A Report from Irving Levin Associates

FOR IMMEDIATE RELEASE  Stephen M. Monroe, Editor
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NORWALK, CT – October 10, 2012 – The most significant recent year for Home Health Care & Hospice M&A activity was 2010, when the dollar value of transactions spiked in the second quarter of that year—the result of Gentiva acquiring Odyssey HealthCare for $984 million, combined with Highland Capital acquiring American HomePatient for $235.2 million, according to Irving Levin Associates’ new report The Home Health Care & Hospice Acquisition Report, Fourth Edition, 2012. Those two acquisitions, along with one in the first quarter of 2012, were unusually large, as deals valued at $30-60 million are otherwise considered quite large for this sector.
 

The number of transactions each year from 2009 through the second quarter of 2012 and respective annual dollar volume, according to The Home Health Care and Hospice Acquisition Report, Fourth Edition, 2012, are listed in the table below.
 

Home Health Care & Hospice Mergers and Acquisitions January 1, 2007 – June 30, 2012

Year

Number of Transactions

Dollar Volume of Transactions

2009

42

$141,000,000

2010

44

$1,433,000,000

2011

29

$290,000,000

2011 First 6 Months

13

$203,000,000

2012 First 6 Months

16

$760,000,000

While the five Home Health Care & Hospice sector deals announced in the second quarter of 2012 amounted to less than half the number (11) announced in the previous quarter, the overall level of activity is on track to beat or at least match the number of transactions announced throughout 2011 (29). Last year the deals were fairly evenly split in terms of timing, with 13 transactions announced in the first half of the year and 16 in the second half.

With the continuing effort to reduce hospital inpatient services in order to cut health-care costs—plus the burgeoning number of senior citizens that we can expect over the next several decades and their desire to remain in their own homes as long or as much as possible—the need for home health care and hospice services has never been greater.
 

The Home Health Care & Hospice Acquisition Report, Fourth Edition, 2012 is published by Irving Levin Associates, Inc. The new 2012 edition includes hard-to-find details on Home Health Care & Hospice M&A transactions such as price/revenue ratios, a therapeutic focus addressed by pharma targets and more. The report was recently published and can be purchased at http://www.levinassociates.com/home-health-description.


For more information on The Home Health Care & Hospice Acquisition Report, Third Edition, 2012 or for a subscription to any Irving Levin publication, call 800-248-1668 or go to www.levinassociates.com.  Irving Levin Associates, Inc. was established in 1948 and is based in Norwalk, CT.  This privately held corporation publishes research reports and newsletters, and maintains health care and seniors housing M&A databases.