VITAS, A Wholly-Owned Subsidiary Of Chemed To Buy Hospice Assets Of Covenant Care In Florida And Alabama For An Aggregate Purchase Price Of $85M
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VITAS Healthcare, a subsidiary of Chemed Corporation (NYSE:CHE), has agreed to acquire hospice operations and an assisted living facility from Covenant Care for $85 million. The operations are located across Florida and Alabama. The acquisition, aimed at expanding VITAS's service footprint, is expected to close in Q2 2024, pending regulatory approvals. This move is seen as a strategic expansion, enhancing VITAS's presence in key markets and continuing its mission of providing high-quality, patient-centered care.
March 13, 2024 | 1:12 pm
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Chemed Corporation's subsidiary, VITAS Healthcare, is acquiring hospice operations and an assisted living facility from Covenant Care for $85 million, aiming to expand its service area in Florida and Alabama.
The acquisition of Covenant Care's hospice operations by Chemed's subsidiary VITAS is likely to have a positive short-term impact on Chemed's stock (CHE). This strategic expansion into new markets in Florida and Alabama could enhance VITAS's service offerings and potentially increase Chemed's revenue streams. The deal's focus on expanding patient-centered care aligns with Chemed's mission, potentially improving its market position and investor sentiment.
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