US-based home medical equipment provider AdaptHealth has signed a definitive agreement to acquire the Patient Care Solutions (PCS) business from McKesson Corporation.
Subject to customary regulatory approvals, completion of the transaction is expected to take place next month.
The total investment of AdaptHealth in PCS, including restructuring costs, is expected to be nearly $30m.
Furthermore, as part of the acquisition, AdaptHealth will enter a supply and distribution agreement with McKesson for PCS’s home medical equipment service lines.
PCS generated net revenues of approximately $134m for the last 12 months, ending 31 October.
Currently, PCS provides ostomy supplies, urological supplies, wound care supplies, diabetic care supplies, incontinence supplies and breast pumps to patients across the US.
AdaptHealth CEO Luke McGee 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.”
AdaptHealth president and COO Josh Parnes 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.”
The products and service offerings by AdaptHealth include sleep therapy equipment, such as CPAP and BiPAP machines and supplies, respiratory equipment including oxygen, invasive and non-invasive ventilation, mobility equipment, wheelchairs, walkers and hospital beds.
As of 30 September, AdaptHealth serviced more than one million patients annually in 49 states through a network of 189 locations.