Vitas Healthcare Corporation, a subsidiary of Chemed Corporation, has successfully completed the acquisition of all hospice operations and an assisted living facility from Covenant Health and Community Services, Inc. (Covenant) for a total purchase price of $85 million. This transaction, which was structured as an asset purchase, includes the hospice operations spanning the panhandle of Florida and Alabama, covering markets in Florida such as Tallahassee, Marianna, Fort Walton Beach, Panama City, Crestview, and Pensacola, as well as the Dothan and Mobile/Daphne markets in Alabama.
The transaction, announced on March 13, 2024, has now closed effectively as of April 17, 2024. Chemed Corporation, listed on the New York Stock Exchange and headquartered in Cincinnati, Ohio, operates two wholly owned subsidiaries: Vitas Healthcare and Roto-Rooter. Vitas is recognized as the nation's largest provider of end-of-life hospice care, while Roto-Rooter is the leading provider of plumbing and drain cleaning services in the nation.
It remains to be seen how this recent acquisition will impact Chemed Corporation's financial performance and market position in the future. Following these announcements, the company's shares moved -1.0%, and are now trading at a price of $603.61. For more information, read the company's full 8-K submission here.
