AdaptHealth, a US home medical equipment provider (HME provider), has agreed to acquire the Patient Care Solutions business from German healthcare and pharma company McKesson.
Patient Care Solutions offers wound care supplies, urological supplies, ostomy supplies, incontinence supplies, breast pumps, and diabetic care supplies to patients across 50 states in the US. For the 12 months that ended on 31 October 2019, the business generated net revenues of around $134 million.
Luke McGee – AdaptHealth CEO said: “The acquisition of PCS will, upon closing, represent an important step in our continuing growth as an industry consolidator.
“In addition to adding scale and strengthening our geographic footprint, we will add urological and ostomy products to our already comprehensive HME product portfolio, and significantly increase our exposure in areas such as wound care, breast pumps, incontinence supplies, and diabetic care. We believe the addition of these products will double our overall addressable market.”
In connection with the deal, AdaptHealth will sign a supply and distribution agreement with McKesson with respect to the HME service lines of Patient Care Solutions.
Josh Parnes – AdaptHealth president and COO said: “As part of the transaction, we are also very pleased to expand our existing distribution relationship with McKesson. The acquisition of PCS complements our existing PAP (sleep) resupply offering and will allow us to provide an expanded set of supplies to both the current customers of PCS and AdaptHealth.”
AdaptHealth said that the total investment, including restructuring costs until the business is integrated fully on its platform in the second half of 2020, is likely to be around $30 million.
Subject to customary closing conditions, the acquisition is expected to be closed in December 2019.
AdaptHealth provides a range of medical products and solutions designed to help patients in managing chronic conditions on their own at their homes.
Some of its products include sleep therapy equipment, mobility equipment, respiratory equipment, walkers, wheelchairs and hospital beds.
AdaptHealth also offers hospice-focused HME services, custom bracing services, nutritional HME services, and wound therapy services.