Aveanna Healthcare to acquire Thrive Skilled Pediatric Care

ATLANTA - Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH), a provider of diversified home care services with a market capitalization of $1.1 billion, announced today its agreement to acquire Thrive Skilled Pediatric Care. The transaction is slated for completion in the second fiscal quarter of 2025, pending regulatory approvals. According to InvestingPro data, Aveanna has demonstrated remarkable performance with a 124.8% return over the past year.

Thrive Skilled Pediatric Care operates in seven states with 23 locations, delivering specialized home care for children. The acquisition expands Aveanna’s services into two new states and strengthens its presence in existing markets, building upon its current annual revenue of $2.02 billion. Thrive SPC offers a range of services, including Private Duty Nursing, Pediatric Therapy, and assistance by Licensed Health Aides and Certified Nurse Assistants.

Jeff Shaner, CEO of Aveanna, expressed enthusiasm about the integration, highlighting both companies’ commitment to high-quality, patient-centered care. He anticipates the merger will uphold Aveanna’s leadership in providing exceptional care and value to stakeholders.

Summit Partners, which supported the founding of Thrive SPC, views the acquisition as a significant milestone for the company, believing Aveanna to be an ideal partner due to shared values in patient care quality.

Aveanna plans to finance the acquisition through a mix of stock issuance and cash reserves. Edge Healthcare Partners and Bass, Berry & Sims advised Aveanna in the transaction, while Cantor Fitzgerald & Co. and Ropes & Gray LLP advised Thrive SPC.

Aveanna Healthcare, based in Atlanta, Georgia, offers a wide array of pediatric and adult healthcare services across 34 states. The company’s services are designed to provide a cost-effective alternative to prolonged hospitalization.

This acquisition is expected to enhance Aveanna’s service offerings and market reach, as it continues to focus on providing care to medically complex and high-cost patient populations. While financial terms have not been disclosed, analysts maintain a positive outlook, with InvestingPro reporting that net income is expected to grow this year. The company’s stock currently trades between analyst targets of $4.50 and $7.00 per share.

The information for this article is based on a press release statement.

In other recent news, Aveanna Healthcare Holdings Inc. reported its fourth-quarter 2024 financial results, which surpassed expectations. The company achieved earnings per share of $0.05, outperforming the anticipated loss of $0.003, while revenue reached $519.9 million, exceeding the forecast of $499.07 million. Moody’s Ratings affirmed Aveanna’s Caa1 rating and upgraded its outlook from stable to positive, citing improvements in business performance and leverage reduction. UBS adjusted its price target for Aveanna Healthcare, raising it to $4.50, though the firm maintained a Sell rating on the stock. Additionally, Aveanna announced the resignation of Dr. Sheldon Retchin from its Board of Directors due to health reasons, with no immediate successor named. The company continues to focus on its preferred payer strategy and aims for significant growth in its Private Duty Services segment. These developments come as Aveanna navigates a challenging healthcare environment, with a strategic focus on enhancing service offerings and expanding payer agreements.

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