by Tim Rowan, Editor
One of the most respected and successful home care agencies in California has been acquired by a national provider. In a December 8 press release, The Braff Group announced that it had managed the sale of Accredited Home Care to Aveanna Healthcare holdings Inc. (NASDAQ: AVAH).
Owner and founder Barry Berger said his farewells and retired at the end of November, after a 41-year run, several terms on the CAHSAH board, and having built a multi-million-dollar company with a reputation for excellent care. His generosity and commitment to the success of Accredited's staff and patients were legendary in California, paying overtime to his caregivers long before it became a labor department mandate, and not passing that cost along to clients.
According to the Braff Group news release, the acquisition base purchase price was $180 million, with an additional $45 million subject to satisfaction of certain 2021 volume targets. Aveanna expects to fully integrate Accredited in 2022, with a majority of the integration process occurring in the first 180 days. While initial "getting acquainted" meetings have begun, no announcements regarding staff changes are expected for several months, if at all. The Braff Group originated the transaction and served as the exclusive mergers and acquisitions advisor to Accredited Home Care.
Aveanna is a leading, diversified home care platform focused on providing care to medically complex, high-cost patient populations. It was formed in 2017 through the merger of PSA Healthcare and Epic Health Services. Ron Windley, former Executive Chairman of PSA Healthcare, fills the same role at Aveanna. Tony Strange, Aveanna CEO, was President and Chief Executive at PSA.
Founded in 1980, Accredited is one of the largest home care agencies in the Western United States, providing nursing and home health services to more than 9,000 patients annually through its team of 6,250 field nurses and caregivers. Accredited has been recognized as one of the nation's HomeCare Elite in repeated years. Accredited has five offices located in Los Angeles, Orange, and San Diego counties. It had approximately $114.8 million in revenue for the twelve months ended August 31, 2021. Accredited currently derives 86% of its revenues through Medicaid or other state-funded programs.
Windley stated, "We are excited to add Accredited's growing and well-respected business to Aveanna's offerings in California. Accredited's strong unskilled home care business has provided thousands of patients the ability to reduce their need for institutional care and reduce their overall healthcare expenditures. This combination will enhance Aveanna's position in California to benefit from the accelerating utilization of a growing variety of home-based care options for patients and their families."
Accredited President and Founder Berger said, "I formed this company in 1980 based on the core principles of maintaining a strong and ethical culture, always putting the patients first, and creating a positive work environment that values our associates for their outstanding contributions. We are pleased to have found in Aveanna a company that shares our commitment to excellence, professionalism, growth, and a family spirit. I am confident that the future with Aveanna is bright."
Headquartered in Pittsburgh, PA, The Braff Group is the leading mergers and acquisitions advisory firm specializing exclusively in health care services, including behavioral health, home health, home care and hospice, health care staffing, home medical equipment, pharmacy services, urgent care, digital health, and ancillary health care services. The firm provides an array of sell-side only transaction advisory services including representation, debt and equity recapitalization, strategic planning, and valuation. Founded in 1998, The Braff Group has completed more than 365 transactions. According to Refinitiv, The Braff Group has repeatedly been ranked among the top five health care mergers & acquisitions advisory firms.
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