Thread by @longoption

$UNH was just cleared by the DOJ to acquire Amedisys in a $3.3B transaction. This is a HUGE deal.

If you are one of the many people who've never heard of Amedisys before, here's who they are and what they do. 🧵 👇

Amedisys is a home based healthcare provider, providing hospice, palliative, and other care right at patients' homes. It was founded in 1982, and has since grown into one of the largest health care provider networks in the US. They care for nearly half a milion patients yearly.

Notably, Amedisys maintains $UNH standard of very high quality care- 95% of their centers had 4 or more stars, way above national averages. Their network is also vast:110,000 physicians across nearly 3,000 hospitals refer patients to Amedisys, across 39 states.

As part of the deal, amidst antitrust concerns, $UNH will divest from 164 home health and hospice locations. Although not ideal, gaining access to Amedisys' large network and trusted brand is well worth the price tag.

Let's talk numbers: Amedisys ($AMED) put up 2.4B in revenue and 245.8M adjusted EBITDA in 2024, and thus $UNH is valuing them at just 13.4 x adjusted EBITDA.

This is an even better deal when you consider that savings/efficiency gains from $UNH's vertically integrated network will increase earnings even further.

(note: their non-adjusted EBITDA numbers are heavily impacted by merger costs, and are about half of adjusted EBITDA)

I've been very bullish on $UNH and this further reinforces that thesis. Their vertical integration, prioretary data, and sheer scale provide a better moat than any other company in the business.

There is perhaps no other business in the world that is so integral to the industry they work in.

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