AeroCare, established in 2000, provides a suite of direct-to-patient equipment and services to its customers
AdaptHealth has also completed the acquisition of New England Home Medical Equipment (NEHME).
AdaptHealth, a provider of home healthcare equipment, has agreed to acquire Florida-based technology-enabled respiratory and home medical equipment (HME) distribution platform AeroCare Holdings for around $2bn.
The deal includes the payment of $1.1bn in cash, in addition to offering 31 million shares of AdaptHealth common stock.
Private investors such as Peloton Equity, SkyKnight Capital, SV Health Investors, and AeroCare management and employees are the current owners of the company.
Established in 2000, AeroCare provides a range of direct-to-patient equipment and services such as CPAP and BiPAP machines, oxygen concentrators, home ventilators, and other durable medical equipment products.
AeroCare claims to have broad relationships with major national manufacturers and managed healthcare plans, and services patients in more than 300 locations across 30 states in the US.
The acquisition is expected to allow AdaptHealth to gain an access to new customers and strengthen relationships with referral partners, patients, manufacturers, and managed healthcare plans.
Subject to certain customary closing conditions and regulatory approvals, the deal is expected to be completed in the first quarter of 2021.
The combined company will operate as AdaptHealth
Upon completion of the deal, the combined company will be named as AdaptHealth. It will be jointly managed by AdaptHealth CEO Luke McGee and AeroCare CEO Steve Griggs. Josh Parnes will continue to act as president.
McGee said: “We are very excited to welcome Steve and the AeroCare team to AdaptHealth. 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.”
Separately, AdaptHealth has completed the acquisition of Massachusetts-based New England Home Medical Equipment (NEHME), to expand its diabetes division.
AdaptHealth offers products and services, including sleep therapy equipment, supplies and related services, medical devices and supplies, home medical equipment, oxygen and related chronic therapy services.
In January this year, AdaptHealth completed the acquisition of the Patient Care Solutions (PCS) business from Germany-based healthcare firm McKesson for an undisclosed amount.
