ModivCare Expands Personal Care Segment With CareFinders Acquisition Of $340M

ModivCare Inc MODV has agreed to acquire CareFinders Total Care LLC for $340 million.
CareFinders is a personal care provider in the Northeast, with a presence in New Jersey, Pennsylvania, and Connecticut, with annual revenue of approximately $200 million.
It delivers approximately 10 million hours of care annually to over 7,500 patients through its more than 6,200 caregivers.
The deal consideration includes an 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 Q3 of 2021.
Once the acquisition of CareFinders is completed, ModivCare's personal care segment will include nearly 16,000 caregivers across seven states, expecting to provide approximately 30 million hours of care to about 18,000 patients annually.
Price Action: MODV shares are trading at $165.83 on the last check Monday.