PLYMOUTH MEETING, Pa.--(BUSINESS WIRE)--AdaptHealth Corp. (NASDAQ: AHCO; AHCOW), the third largest home medical equipment (HME) provider in the United States, today announced it has entered into a definitive agreement to acquire the Patient Care Solutions (PCS) business from McKesson Corporation. The proposed transaction is expected to close in December 2019, subject to the satisfaction of customary closing conditions. The total investment, including restructuring costs until the business is fully integrated on AdaptHealth’s platform in the latter half of 2020, is expected to be approximately $30 million.
PCS currently provides wound care supplies, ostomy supplies, urological supplies, incontinence supplies, diabetic care supplies, and breast pumps directly to patients across the United States. The company maintains extensive national relationships with physicians, medical facilities and customers, and currently serves all 50 states.
For the trailing twelve months ended October 31, 2019, PCS generated net revenues of approximately $134 million. In connection with the acquisition, AdaptHealth will enter into a supply and distribution agreement with McKesson Corporation with respect to PCS’s HME service lines.
“The acquisition of PCS will, upon closing, represent an important step in our continuing growth as an industry consolidator,” said Luke McGee, AdaptHealth’s CEO. “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.”
Josh Parnes, President and COO of AdaptHealth added, “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.”
About AdaptHealth Corp.
AdaptHealth Corp. (“AdaptHealth”) is the third largest home medical equipment company in the United States. AdaptHealth provides a full suite of medical products and solutions designed to help patients manage chronic conditions in the home, adapt to life and thrive. Product and services offerings include: sleep therapy equipment (CPAP and BiPAP machines and supplies), respiratory equipment (including oxygen, invasive and non-invasive ventilation), mobility equipment, wheelchairs, walkers, and hospital beds. AdaptHealth also provides custom bracing services, hospice-focused HME services, wound therapy and nutritional HME services. The company is proud to partner with an extensive and highly-diversified network of referral sources, including acute care hospitals, sleep labs, pulmonologists, skilled nursing facilities, and clinics. AdaptHealth services beneficiaries of Medicare, Medicaid and commercial insurance payors. As of September 30, 2019, AdaptHealth services over one million patients annually in 49 states through its network of 189 locations. Learn more at www.adapthealth.com.
