Home-based care providers up after UnitedHealth's $5.4 bln deal for LHC

Addus HomeCare

29/03/2022 15:48

** Shares of home healthcare services providers Amedisys Inc
 AMED.O  and Addus HomeCare Corp  ADUS.O  up ~4% 
    ** Brokerage BMO Capital Markets says the companies will be
in focus as UnitedHealth Group's  UNH.N  deal for LHC Group
 LHCG.O  is likely to trigger interest in home health companies
from other insurers such as Anthem  ANTM.N , Centene  CNC.N  and
Cigna  CI.N 
    ** UNH said on Tuesday it would buy LHCG for about $5.4
billion in cash; UNH will pay $170 for each share of LHCG,
representing an 8.12% premium to the stock's last close
 urn:newsml:reuters.com:*:nL3N2VW2I0
    ** "We continue to believe consolidation should continue in
the home-based care spaces, though we are a little surprised at
the modest premium given where the stock has traded
historically" - Oppenheimer

 (Reporting by Manojna Maddipatla in Bengaluru)
 ((manojna.kalyani@thomsonreuters.com; +91  8061822700;))