-- Adds greater scale to ModivCare’s leading
personal care platform established with the foundational
acquisition of Simplura Health Group --
ModivCare Inc. (“ModivCare” or the “Company”) (Nasdaq: MODV), a
technology-enabled healthcare services company that provides a
suite of integrated supportive care solutions focused on improving
patient outcomes, today announced that the Company has signed a
merger agreement to acquire CareFinders Total Care LLC
(“CareFinders”).
CareFinders is a personal care provider in the Northeast, with a
scaled presence in New Jersey, Pennsylvania, and Connecticut.
CareFinders delivers approximately 10 million hours of care
annually to over 7,500 patients through its more than 6,200
caregivers. CareFinders’ annual revenue is approximately $200
million, pro forma for recent acquisitions, generated primarily
from Medicaid and Managed Care Organization payors. During the
pandemic, ModivCare partnered with CareFinders to remove the
barrier of transportation for its caregivers by providing more than
85,000 rides, which greatly assisted CareFinders in continuing to
care for their patients in the home.
Under the terms of the agreement, ModivCare will acquire 100
percent of the equity interests in CareFinders for a purchase price
of $340 million (subject to customary purchase price adjustments),
inclusive of estimated $34 million of net present value tax
attributes generated by the transaction, implying a net purchase
price of $306 million. ModivCare intends to fund the transaction
through a combination of cash on hand and the Company’s credit
facility. The transaction is expected to close in the third quarter
of 2021, subject to customary closing conditions.
Once the acquisition of CareFinders is completed, ModivCare’s
personal care segment is expected to include nearly 16,000
caregivers across 7 states, expecting to provide approximately 30
million hours of care to approximately 18,000 patients
annually.
“ModivCare is leading the transformation to better connect
people with care, through transportation, personal care, and
nutritional meal delivery,” said Daniel E. Greenleaf, President and
Chief Executive Officer of ModivCare. “The acquisition of
CareFinders broadens access to in-home personal care solutions for
patients and supports our strategy to expand on our personal care
platform. We are evaluating an expanse of opportunities to continue
this exciting and profitable growth. As we expand our footprint, we
believe we will drive significant value for our patients, partners,
and shareholders.”
Mr. Greenleaf further commented, “Creating healthier communities
means providing connections to more reliable care and being the
partner of choice for caregivers, and for the payors and states we
serve. With the acquisition of CareFinders, we are incredibly
excited about advancing health equity for those who need it
most.”
Dave Middleton, President and Chief Executive Officer of
ModivCare’s personal care segment, added, “The combination of our
companies further strengthens our presence in the Northeast and
complements our existing personal care capabilities. We are better
together – making a meaningful difference one patient, and one
moment of care at a time.”
Heath Sampson, Chief Financial Officer of ModivCare, added, “The
transaction is projected to deliver immediate earnings accretion to
ModivCare. Furthermore, in addition to an exciting long-term
trajectory, we expect near-term momentum from the business as
COVID-19 pressures recede and recent rate increases are
implemented.”
Jim Robinson, Chief Executive Officer of CareFinders added,
“CareFinders has been dedicated to improving the lives of our
patients and creating a uniquely rewarding environment for
caregivers throughout our history, so it is a natural fit for us to
join the ModivCare family of integrated supportive care solutions.
We look forward to partnering with the entire ModivCare team to
leverage the power of technology and our shared Total Care
philosophy to continue to influence healthier outcomes and change
lives for the better.”
Jefferies LLC is serving as exclusive financial advisor to
ModivCare and Gibson, Dunn & Crutcher LLP is serving as
ModivCare’s legal advisor. Moelis & Company LLC and J.P. Morgan
Securities LLC are serving as financial advisors to CareFinders and
Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as
CareFinders’ legal advisor.
Conference Call
ModivCare will hold a conference call to discuss the acquisition
of CareFinders on Monday, July 26, 2021, at 8:30 a.m. ET.
To access the conference call by phone, please dial:
- US toll-free: 1 877-423-9820
- International: 1 201-493-6749
The webcast and accompanying presentation can be accessed on the
Company’s website:
https://investors.modivcare.com/events-presentations/default.aspx.
The webcast also can be accessed here.
The conference call will be archived on the Company’s
website.
Forward-Looking Statements
Certain statements contained in this press release constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
predictive in nature and are frequently identified by the use of
terms such as “may,” “will,” “should,” “expect,” “anticipate,”
“believe,” “estimate,” “intend,” and similar words indicating
possible future expectations, events or actions. In addition,
statements that are not historical statements of fact should also
be considered forward-looking statements. Such forward-looking
statements are based on current expectations, assumptions,
estimates and projections about the Company’s business and the
Company’s industry, and are not guarantees of the Company’s future
performance. These statements are subject to a number of known and
unknown risks, uncertainties and other factors, many of which are
beyond the Company’s ability to control or predict, which may cause
actual events to be materially different from those expressed or
implied herein.
The Company has provided additional information in its Annual
Report on Form 10-K filed with the Securities and Exchange
Commission (the “SEC”) for the fiscal year ended December 31, 2020
and subsequent filings with the SEC. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date the statement was made and are expressly
qualified in their entirety by the cautionary statements set forth
herein and in our other filings with the SEC. We undertake no
obligation to update or revise any forward- looking statements
contained in this release, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
About ModivCare
ModivCare Inc. (“ModivCare”) (Nasdaq: MODV) is a
technology-enabled healthcare services company that provides a
suite of integrated supportive care solutions for public and
private payors and their patients. Our value-based solutions
address the social determinants of health (SDoH), enable greater
access to care, reduce costs, and improve outcomes. We are a
leading provider of non-emergency medical transportation (NEMT),
personal and home care, and nutritional meal delivery. ModivCare
also holds a minority equity interest in CCHN Group Holdings, Inc.
and its subsidiaries (“Matrix Medical Network”), which partners
with leading health plans and providers nationally, delivering a
broad array of assessment and care management services to
individuals that improve health outcomes and health plan financial
performance. To learn more about ModivCare, please visit
www.modivcare.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210726005212/en/
Media: Kate Zerone Senior Manager, Communications
kate.zerone@modivcare.com
Investors: The Equity Group Kalle Ahl, CFA
kahl@equityny.com
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