Beverly Enterprises doubles hospice operations with acquisition
Beverly Enterprises has announced it acquired privately held Memphis, TN-based Hospice USA, thereby doubling its hospice operations.
Fort Smith, AR-based Beverly currently operates subsidiary AseraCare, which provides services to 1,100 hospice patients through 25 agencies in 10 states. AseraCare will take over and operate Hospice USA, which runs 18 agencies for around 900 patients in Alabama, Mississippi and Tennessee.
Hospice USA's projected 2004 revenues are $37 million, while AseraCare revenues (excluding the acquisition) are expected to exceed $50 million. Beverly said the buyout would boost its pre-tax income by more than $6 million in the first full year.
Beverly did not release the price of the deal, which is expected to close around July 31.