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Aveanna applies for $ 100 million IPO and announces major expansion plans

Aveanna Healthcare Holdings Inc. — a large, fast-growing home care company that has historically specialized in caring for complex pediatric patients — is trying to publish.

Atlanta-based home healthcare providers announced plans to raise $ 100 million in an initial public offering on Thursday. In that paperwork, Aveanna also unveiled a new long-term strategy for making significant investments in the adult home health care business.

“We believe we have the opportunity to leverage the country’s home healthcare infrastructure to develop industry-leading adult home healthcare and hospice businesses on the same scale and scale as the pediatric home healthcare business,” the company said. Is stated in S-1 Financial Filing. “With this long-term expansion strategy in the adult end market through denovo’s expansion and acquisition, Aveanna offers a wider variety of reimbursement sources, lower risk profiles, and a wider set than its home healthcare peers. We believe that we will provide a very distinctive profile with. An opportunistic pursuit of organic and inorganic growth tools. “

Aveanna is Epic Health Services Inc. Was established in March 2017 after the merger of Pediatric Services of America Inc. and Pediatric Services of America Inc. Since then, providers have taken advantage of the highly diversified payer mix and general demand for home care to grow their business five-fold. Service nationwide.

Over the last five years, Aveanna has grown from revenues of $ 324.6 million in 17 states to revenues of approximately $ 1.5 billion in 30 states as of fiscal year 2020. The company, headed by Executive Chairman Rodney Windley and CEO Tony Strange, has 245 branches. The entire.

“Adult home care and hospice are a natural extension of Aveanna’s core home care infrastructure,” continued S-1. “In particular, the adult home care business has a platform infrastructure for clinical program management, automated and efficient nurse recruitment, technology-driven revenue cycle management, payer contracts, and entry into new geographic markets. We utilize our core competencies. “

In 2020 alone, Aveanna has completed at least five acquisitions. Recently, I bought Recover Health for about $ 61 million. Last year’s biggest acquisition was in October, when it bought Five Points Healthcare for $ 64.4 million.

The company plans to actively pursue adult home health and hospice opportunities, but is likely to continue to focus on pediatric private nursing (PDN). Even more than the adult home care business, the pediatric home care situation is very fragmented, with small local institutions occupying at least 75% of the market.

“PDN, today’s largest business, is a stable and steadily growing industry, with increasing adoption of home care instead of family and facility-based care, and general inflation of nurse labor. There is a tailwind from the pursuit of inflation redemption trends. ”S-1 state. “PDN addresses the needs of children with complex health care, many of whom have reached adulthood and continue to require intensive care at home.”

The number of shares offered and the range of offered prices are undecided. Aveanna will list common stock on the NASDAQ under the ticker symbol “AVAH”.

Aveanna predicts that the broader home care market, including pediatric home care, home care, hospice, personal care and other services, will be a $ 107 billion opportunity in 2020.

Aveanna applies for $ 100 million IPO and announces major expansion plans

Source link Aveanna applies for $ 100 million IPO and announces major expansion plans

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