Business
AdaptHealth Corp. Announces Acquisition of National HME Provider AeroCare Holdings Inc. and Updates Financial Guidance For 2021
Expected to significantly enhance scale and geographic reach, providing access to new customers and strengthening relationships with referral partners,
About this update from Adapthealth Corp.
[{"type":"text","content":"\n\nExpected to significantly enhance scale and geographic reach, providing access to new customers and strengthening relationships with referral partners, patients, manufacturers, and managed healthcare plans \n\n\nGreater managed care access, broader product availability, and enhanced customer service for patients \n\n\nCombination of two industry leading technology platforms will position the combined company to lead the shift to connected healthcare and value-based arrangements\n\n\nTotal purchase price of approximately $2.0 billion, comprised of $1.1 billion in cash and 31 million shares of AdaptHealth\n\n\nExpected to be financially accretive to growth, earnings, and cash flow \n\n\n$50 million in estimated run-rate cost synergies identified\n\n\nBest-in-class senior leadership team with strong cultural alignment\n\n\n PLYMOUTH MEETING, Pa.--(BUSINESS WIRE)--\nAdaptHealth Corp. (NASDAQ: AHCO) (“AdaptHealth” or the “Company”), a leading provider of home healthcare equipment, medical supplies to the home and related services in the United States, announced today that it has entered into a definitive agreement to acquire Orlando, Florida based AeroCare Holdings, Inc. (“AeroCare”).\n\nFounded in 2000, AeroCare is a leading national technology-enabled respiratory and home medical equipment (“HME”) distribution platform in the United States and offers a comprehensive suite of direct-to-patient equipment and services including CPAP and BiPAP machines, oxygen concentrators, home ventilators, and other durable medical equipment products. AeroCare maintains extensive relationships with leading national manufacturers and managed healthcare plans, and services patients in over 300 locations across 30 states. AeroCare is currently owned by private investors including Peloton Equity, SkyKnight Capital, SV Health Investors, and AeroCare management and employees. The combined company will operate under the name AdaptHealth, and Luke McGee, CEO of AdaptHealth, and Steve Griggs, CEO of AeroCare, will jointly lead the company as Co-CEOs. Josh Parnes will continue to serve as President. In addition, AdaptHealth will expand its Board of Directors at closing of the transaction to 11 directors, with Steve Griggs and shareholder designee Ted Lundberg of Peloton Equity to join the Board.\n\nLuke McGee commented, “We are very excited to welcome Ste...