Addus HomeCare Announces Closing of Public Offering

Rhea-AI Impact
Rhea-AI Sentiment
Rhea-AI Summary

Addus HomeCare (Nasdaq: ADUS) has successfully closed a public offering of 1,725,000 shares of its common stock, including 225,000 shares sold via an underwriters' option. The shares were priced at $108.00 each, generating approximately $176 million in net proceeds after underwriting discounts and expenses.

Out of these funds, $81.4 million will be used to repay outstanding indebtedness under Addus's credit facility. The remaining balance is earmarked for general corporate purposes, which covers previously announced acquisitions, including the personal care assets of Gentiva, and future investments or acquisitions. The offering did not involve any selling stockholders.

BofA Securities and Jefferies led the offering, with Oppenheimer, Raymond James, RBC Capital Markets, and Stephens Inc. acting as co-managers. The SEC approved the automatic shelf registration statement on September 2, 2022, with the final prospectus supplement dated June 26, 2024.

  • Addus raised approximately $176 million from the public offering.
  • The company intends to repay $81.4 million of outstanding debt, improving its financial leverage.
  • Remaining funds will support acquisitions, including Gentiva's personal care assets, and other corporate purposes.
  • Shareholder dilution due to the issuance of 1,725,000 additional shares.

Addus HomeCare has successfully closed a significant underwritten public offering, raising approximately $176 million. This move showcases the company's strategic financial planning and positions them well for future growth. With approximately $81.4 million allocated to repay outstanding indebtedness, this will likely improve their debt-to-equity ratio, reducing interest expenses and potentially increasing net income. Moreover, the remaining funds earmarked for general corporate purposes and acquisitions, including the personal care assets of Gentiva, suggest an aggressive expansion strategy.

For retail investors, the repayment of debt is a positive signal, indicating a stronger balance sheet and potentially higher profitability. Additionally, the commitment to acquisitions could drive top-line growth, though it also carries the typical risks associated with M&A activities, such as integration challenges and unexpected costs. Investors should monitor how effectively Addus manages these acquisitions and utilizes the additional capital for sustainable growth.

Addus’s public offering and debt repayment plan underline a trend in the home care sector toward consolidation and expansion. By quickly integrating Gentiva’s assets, Addus aims to bolster its market position. The home care industry is witnessing increased demand due to an aging population and a shift toward home-based care solutions over institutional settings, which could offer substantial growth opportunities.

However, it's essential for investors to recognize that while the sector is promising, it also faces regulatory scrutiny and reimbursement challenges. Successfully navigating these hurdles will be important for Addus’s long-term performance. Investors should keep an eye on any regulatory changes that may impact the reimbursement rates or operational guidelines for home care services.

FRISCO, Texas--(BUSINESS WIRE)-- Addus HomeCare Corporation (Nasdaq: ADUS) (“Addus” or the “Company”), a provider of home care services, today announced the closing of an underwritten public offering of 1,725,000 shares of its common stock (“Common Stock”), including 225,000 shares of Common Stock sold pursuant to the exercise in full by the underwriters of their option to purchase additional shares, at a public offering price of $108.00 per share. The net proceeds to the Company from the offering, after deducting underwriting discounts and commissions and estimated offering expenses, were approximately $176 million. Addus intends to use approximately $81.4 million of the net proceeds it received from this offering for the repayment of all indebtedness outstanding under its credit facility and the remainder for general corporate purposes, including the Company’s previously announced acquisition of the personal care assets of Gentiva and any future acquisitions or investments. There were no selling stockholders in the offering.

BofA Securities and Jefferies acted as joint book-running managers for the offering and Oppenheimer & Co., Raymond James, RBC Capital Markets and Stephens Inc. acted as co-managers.

An automatic shelf registration statement (including a prospectus) relating to the offering of Common Stock was filed with the U.S. Securities and Exchange Commission (the “SEC”) on September 2, 2022, and became effective upon filing. Copies of the final prospectus supplement, dated June 26, 2024, and the accompanying prospectus are available on the SEC’s website at and may also be obtained by request from BofA Securities NC1-022-02-25, Attn: Prospectus Department, 201 North Tryon Street, Charlotte, NC 28255, or by emailing, or Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, or by telephone at (877) 821-7388, or by emailing

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.

About Addus

Addus is a provider of home care services that primarily include personal care services that assist with activities of daily living, as well as hospice and home health services. Addus’ consumers are primarily persons who, without these services, are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Addus’ payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals. Addus currently provides home care services to approximately 49,000 consumers through 214 locations across 22 states.

Certain matters discussed in this press release, including those relating to timing for completion of the offering and the use of proceeds from the offering, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by words such as “will,” “continue,” “expect,” “believe” and similar expressions. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. Forward-looking statements involve a number of risks and uncertainties that may cause actual results and the timing of certain events to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, the following: the impact of macroeconomic conditions, including significant global inflation and elevated interests rates, legislative developments, trade disruptions and the potential adverse effects of current geopolitical conditions; business disruptions due to natural disasters, acts of terrorism, pandemics, riots, civil insurrection or social unrest, looting, protests, strikes or street demonstrations; changes in operational and reimbursement processes and payment structures at the state or federal levels; changes in Medicaid, Medicare, other government program and managed care organizations policies and payment rates, and the timeliness of reimbursements received under government programs; changes in, or our failure to comply with existing, federal and state laws or regulations or our failure to comply with new government laws or regulations on a timely basis; competition in the healthcare industry; the geographical concentration of our operations; changes in the case mix of consumers and payment methodologies; operational changes resulting from the assumption by managed care organizations of responsibility for managing and paying for our services to consumers; the nature and success of future financial and/or delivery system reforms; changes in estimates and judgments associated with critical accounting policies; our ability to maintain or establish new referral sources; our ability to renew significant agreements or groups of agreements; our ability to attract and retain qualified personnel; federal, state and city minimum wage pressure, including any failure of any governmental entity to enact a minimum wage offset and/or the timing of any such enactment; changes in payments and covered services due to the overall economic conditions and deficit reduction measures by federal and state governments, and our expectations regarding these changes; cost containment initiatives undertaken by federal and state governmental and other third-party payors; our ability to access financing through the capital and credit markets; our ability to meet debt service requirements and comply with covenants in debt agreements; our ability to integrate and manage our information systems; any security breaches, cyber-attacks, loss of data, or cybersecurity threats or incidents, and any actual or perceived failures to comply with legal requirements related to the privacy of confidential consumer data and other sensitive information; the size and growth of the markets for our services, including our expectations regarding the market for our services; eligibility standards and limits on services imposed by state governmental agencies; the potential for litigation, audits and investigations; discretionary determinations by government officials; our ability to successfully implement our business model to grow our business; our ability to continue identifying, pursuing, consummating and integrating acquisition opportunities, and expand into new geographic markets; the impact of acquisitions and dispositions, including the potential inability to realize the benefits of potential acquisitions on our business; the effectiveness, quality and cost of our services; our ability to successfully execute our growth strategy; changes in tax rates; the impact of inclement weather or natural disasters; and various other matters, and other risks set forth in the section titled “Risk Factors” in our periodic reports filed with the SEC, including, but not limited to, the our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and our other filings with the SEC, including the preliminary prospectus supplement and the final prospectus supplement (when available). We caution readers not to place undue reliance on any such forward-looking statements which speak only as of the date made. Except as required by law, we undertake no obligation to update or revise any forward-looking statements that it makes in its press releases, whether as a result of new information, future events or otherwise.

Brian W. Poff

Executive Vice President,

Chief Financial Officer

Addus HomeCare Corporation

(469) 535-8200

Dru Anderson

FINN Partners

(615) 324-7346

Source: Addus HomeCare Corporation


What is Addus HomeCare's stock symbol?

Addus HomeCare's stock symbol is ADUS.

How many shares were sold in Addus HomeCare's public offering?

Addus HomeCare sold 1,725,000 shares in its public offering.

What was the price per share in Addus HomeCare's public offering?

The price per share in Addus HomeCare's public offering was $108.00.

How much did Addus HomeCare raise from the public offering?

Addus HomeCare raised approximately $176 million from the public offering.

What will Addus HomeCare use the proceeds from the public offering for?

Addus HomeCare will use $81.4 million to repay outstanding debt and the remaining for general corporate purposes, including acquisitions.

Were there any selling stockholders in Addus HomeCare's offering?

No, there were no selling stockholders in Addus HomeCare's offering.

Who managed Addus HomeCare's public offering?

BofA Securities and Jefferies acted as joint book-running managers, with Oppenheimer, Raymond James, RBC Capital Markets, and Stephens Inc. as co-managers.

Addus HomeCare Corporation


ADUS Rankings

ADUS Latest News

ADUS Stock Data

Home Health Care Services
Health Care and Social Assistance
United States of America