AdaptHealth to buy AeroCare for $2bn
US home healthcare equipment provider AdaptHealth has agreed to buy respiratory and home medical equipment distribution platform AeroCare for around $2bn in cash and shares.
AdaptHealth, which will pay $1.1bn in cash and 31m in shares, said the acquisition will significantly enhance its scale and geographic reach. The deal is expected to be financially accretive to growth, earnings, and cash flow and AdaptHealth said it has identified $50m in run-rate cost synergies.
Chief executive officer Luke McGee said: "This highly accretive transaction pairs up two industry leaders with similar strategies and strong execution track records of growth and profitability, technology innovation, and patient service.
"Our combined company will further enhance our geographic reach with a footprint in 47 of the 48 continental US states, strengthening relationships with our referral partners, patients, manufacturers, and managed healthcare plans. Steve is a highly-regarded innovator in our industry and will bring exceptional leadership to AdaptHealth."
AeroCare offers a suite of direct-to-patient equipment and services including CPAP and BiPAP machines, oxygen concentrators, home ventilators, and other durable medical equipment products. AdaptHealth said it maintains extensive relationships with leading national manufacturers and managed healthcare plans, and services patients in over 300 locations across 30 states.
The business is currently owned by private investors including Peloton Equity, SkyKnight Capital, SV Health Investors, and AeroCare management and employees.