Aveanna information $ 100 million IPO and broadcasts main enlargement plans

Aveanna Healthcare Holdings Inc. – a large and rapidly growing home care company that has historically specialized in the care of complex pediatric patients – is trying to go public.

The Atlanta-based home health provider announced Thursday that it would raise $ 100 million for an initial public offering of shares. In its filing, Aveanna also revealed an emerging long-term strategy to invest heavily in adult home health.

“We believe we have the opportunity to leverage our national home health infrastructure to build an industry-leading home health and adult hospice business that is similar in size and scope to our pediatric home health business,” the company stated in an S -1 financial file. “We believe this long-term expansion strategy in adult end markets through de novo expansion and acquisitions will give Aveanna a distinctive profile compared to its home health counterparts with more diversified reimbursement sources, a lower risk profile and a broader spectrum of Aveanna organic and inorganic growth pathways that can be opportunistically pursued. “

Aveanna was founded in March 2017 following the merger of Epic Health Services Inc. and Pediatric Services of America Inc. Since then, the provider has quintupled its business, benefiting from a highly diversified payer mix and general demand for home care services nationally.

Over the past five years, Aveanna has grown from 17 states with sales of $ 324.6 million to 30 states and sales of approximately $ 1.5 billion as of fiscal 2020. The company – led by Rodney Windley, Executive Chairman, and Tony Strange, CEO – has 245 offices in total.

“Home health and the adult hospice are natural additions to Aveanna’s core home health infrastructure,” continued the S-1. “In particular, the adult home health business leverages our platform infrastructure and core competencies in clinical program management, automated and efficient nurse recruitment, technology-driven revenue cycle management, contracting for payers and entering new geographic markets.”

In 2020 alone, Aveanna completed at least five acquisitions, most recently by purchasing Recover Health for approximately $ 61 million. The largest acquisition last year came in October with the purchase of Five Points Healthcare for $ 64.4 million.

Although the company intends to aggressively exploit home health and adult hospice opportunities, it is likely to continue to focus on pediatric private nursing (PDN). Even more than the adult home nursing business, the child home healthcare landscape is extremely fragmented. Small local agencies make up at least 75% of the market.

“PDN, which is our largest business today, is a stable and growing industry with growing tailwinds due to the increasing adoption of home care instead of family and institutional care and inflationary reimbursement trends that track general nurse inflation.” S-1 states. “PDN addresses the needs of children with medical complexities, many of whom age into adulthood and continue to require intensive home care.”

The number of shares offered and the price range for the proposed offer have not yet been determined. Aveanna intends to list its common stock on the Nasdaq under the ticker symbol “AVAH”.

Aveanna believes the broader home care market – including pediatric home health, home therapy, hospice, personal care, and other services – offers a $ 107 billion opportunity in 2020.

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