CHEMED CORP acquires Covenant Health and Community Services, Inc. (d/b/a Covenant Care) hospice operations

CHEMED CORP acquired Covenant Health and Community Services, Inc. (d/b/a Covenant Care) hospice operations for $85 million, a transaction completed in April 2024, structured as all cash (cash on-hand). The deal was a Asset purchase.

Covenant Health and Community Services, Inc. (d/b/a Covenant Care) hospice operations operates in VITAS Healthcare (hospice / end-of-life care), is based in Florida panhandle (Tallahassee, Marianna, Fort Walton Beach, Panama City, Crestview, Pensacola) and Alabama (Dothan, Mobile/Daphne). VITAS Healthcare acquired substantially all hospice operations and an assisted living facility from Covenant Health and Community Services, Inc., d/b/a Covenant Care, a Florida not-for-profit. Covenant's hospice operations span the panhandle of Florida and Alabama, specifically the Tallahassee, Marianna, Fort Walton Beach, Panama City, Crestview and Pensacola markets in Florida and the Dothan and Mobile/Daphne markets in Alabama. The purchase-price allocation recorded $70.8 million of goodwill, $10.96 million of operating licenses and $3.24 million of property, plant and equipment.

"Covenant Care has a 44-year history of providing high-quality, patient-centered care across communities in Florida and Alabama. Being a similar long-standing, mission-focused provider, VITAS is looking forward to building upon their legacy."

Deepened VITAS density in Florida and opened the Alabama market through an established, mission-aligned not-for-profit hospice with a 44-year operating history. Folded into VITAS Healthcare Corporation

Advisory firms were not disclosed for this transaction.