Plotted by close date where disclosed, otherwise announcement. Select any marker to jump to the deal entry.
Three patterns run through AdaptHealth's acquisitions — what it looks for, how it pays, and how it folds in what it buys.
11 acquisitions — each with the deal value, financing structure, target revenue, and executive commentary where disclosed.
AeroCare was a national, technology-enabled respiratory and home medical equipment distribution platform offering direct-to-patient CPAP and BiPAP machines, oxygen concentrators, home ventilators and other durable medical equipment. The transformative merger roughly doubled AdaptHealth's scale, with the combined company serving nearly 3 million patients from over 500 locations across 46 states. AdaptHealth funded the deal with proceeds from a $500 million senior notes issuance, a refinanced and upsized senior secured credit facility, and cash including proceeds of its January 2021 equity offering. approximately $2.0 billion (~$1.1 billion cash plus ~31 million shares of AdaptHealth common stock, issued as Class A and non-voting convertible preferred).
Solara was one of the largest independent direct-to-patient distributors of continuous glucose monitors (CGM) in the United States, offering a comprehensive suite of direct-to-patient diabetes management supplies including CGMs, insulin pumps and other diabetic supplies. The acquisition established AdaptHealth as a leader in the high-growth diabetes market and expanded its recurring direct-to-patient supply revenue. $380.7 million cash plus 3,906,250 shares of Class A common stock (Solara and ActivStyle closed together for combined consideration of ~$487 million — ~$424.5 million cash and ~$62.5 million stock).
These are highly strategic, complementary and accretive acquisitions. We believe Solara will immediately establish AdaptHealth as a leader in the high-growth diabetes market and advances our goal to offer high-value services to people with chronic conditions in their homes.Luke McGee — CEO, AdaptHealth
ActivStyle was a leading direct-to-consumer supplier of incontinence and urology products to patients throughout the United States. It added critical mass to AdaptHealth's direct-to-patient supply categories and increased the company's exposure to recurring supply sales. $65.5 million cash (part of the combined ~$487 million Solara + ActivStyle close).
ActivStyle will add critical mass to important supply product categories; each company also brings to AdaptHealth a talented group of industry professionals. The addition of Solara and ActivStyle will enrich our direct-to-patient product offerings, create a single supply source for an expanded set of chronic care products and services, and increase our overall exposure to recurring supply sales.Luke McGee — CEO, AdaptHealth
PCS, a subsidiary of McKesson Corporation, was a direct-to-patient home medical equipment supplies business providing wound care, ostomy, urological, incontinence and diabetic care supplies and breast pumps across all 50 states. For the trailing twelve months ended October 31, 2019 PCS generated net revenues of approximately $134 million. AdaptHealth said the deal would roughly double its overall addressable market and also entered into a supply and distribution agreement with McKesson. $15.0 million cash at closing (total investment including integration/restructuring expected to be ~$30 million).
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... We believe the addition of these products will double our overall addressable market.Luke McGee — CEO, AdaptHealth
Community Surgical Supply provided oxygen, respiratory therapy services, infusion therapy services and home medical equipment to customers throughout the northeastern United States. $129.4 million cash at closing plus potential contingent consideration of up to $6.5 million.
Pinnacle was a distributor of insulin pumps, insulin pump supplies, continuous glucose monitoring systems and diabetes test strips in the United States. $80.4 million cash plus 997,067 shares of Class A common stock, and potential contingent consideration of up to $15.0 million.
Spiro was a provider of home medical equipment and supplies. $66.1 million cash plus 244,641 shares of Class A common stock, and potential contingent consideration of up to $1.0 million.
AdaptHealth purchased the durable medical equipment business assets of Advanced Home Care, Inc. $58.5 million cash at closing plus potential contingent payment of up to $9.0 million.
Healthy Living was a provider of continuous glucose monitors and insulin pumps. $47.0 million cash plus 196,779 shares of Class A common stock.
WeCare was a distributor of durable medical equipment and supplies in the United States. $34.8 million cash plus 231,866 shares of Class A common stock.
Agilis was an e-commerce retailer of sleep apnea and respiratory equipment in the United States. $30.8 million cash plus 538,079 shares of Class A common stock, and potential contingent consideration of up to $1.0 million.