LHC Group, a post-acute-care provider based in Lafayette, La., said Friday that it has completed the acquisition of Halcyon Hospice for $58.5 million.
Halcyon, based in Cumming, Ga., operates 16 hospice locations across three states, including two inpatient hospice facilities. It has approximately 400 employees. The company's overall service area covers 183 counties across Georgia, Mississippi and South Carolina, including 59 counties in which LHC is licensed for home health.
Halcyon's annual revenue is approximately $41 million.
With this acquisition, LHC's hospice service line will increase to 53 locations in 12 states with over $110 million in annual revenue. LHC's net service revenue in fiscal 2014 was $733.6 million, and its operating income was $45.5 million.
LHC has also expanded its home health business. In March, it entered into a home health joint venture with Missouri Delta Medical Center, based in Sikeston, Mo. And in July 2014, LHC spent $10 million to acquire Life Care Home Health, the home health division of Life Care Centers of America, based in Cleveland, Tenn.
Other post-acute-care companies have put up big money this year in M&A deals, but none have cracked the billion-dollar level.
Brookdale Senior Living in March entered into an $849 million definitive agreement with HCP to acquire Chartwell Retirement Residences' portfolio of 35 private pay senior housing communities. Brookdale, based in Brentwood-Tenn., will own 10% of the portfolio, with HCP, a Long Beach, Calif.-based real estate investment trust, owning 90%.
Birmingham, Ala.-based HealthSouth put up $730 million in June to acquire Reliant Hospital Partners, a Richardson, Texas-based rehabilitation provider. In February, HealthSouth also acquired Lexington, Ky.-based Cardinal Hill Rehabilitation Hospital.