BIRMINGHAM, AL: Hospital operator HealthSouth Corp has bought the owner of Encompass Home Health and Hospice.
HealthSouth says it is looking for further acquisitions in the sector.
The company bought Encompass’ owner, EHHI Holdings Inc, for about $750 million from healthcare-focused private investment firm Cressy & Co LP, expanding its home health business by adding 140 locations across 13 U.S. states.
HealthSouth said it has had its eye on Encompass – the fifth largest provider of Medicare-focused, skilled home health services in the United States – for four years.
HealthSouth said it expected the deal to close at the end of the year and to add to earnings in 2015.
J.P. Morgan Securities LLC acted as exclusive financial advisor to HealthSouth, while Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to HealthSouth…