AdaptHealth Corp. acquires Patient Care Solutions (PCS) business of McKesson Corporation

AdaptHealth Corp. acquired Patient Care Solutions (PCS) business of McKesson Corporation for $15.0 million cash at closing (total investment including integration/restructuring expected to be ~$30 million), a transaction completed in January 2020, structured as all cash. The deal was a Carve-out.

Patient Care Solutions (PCS) business of McKesson Corporation operates in Home medical equipment supplies (urology, ostomy, wound care, incontinence, diabetic care, breast pumps), is based in United States (all 50 states), had revenue of about ~$134 million net revenue (TTM ended October 31, 2019). 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.

AdaptHealth described PCS as an important step in its continuing growth as an industry consolidator, adding scale, strengthening its geographic footprint, adding urological and ostomy products and increasing exposure in wound care, breast pumps, incontinence and diabetic care.

Roughly doubled AdaptHealth's addressable market and added urology/ostomy/wound-care product lines plus a McKesson distribution relationship. Entered a supply and distribution agreement with McKesson; Rodney Carson named President of AdaptHealth PCS. AdaptHealth Patient Care Solutions (AdaptHealth PCS)

Advisory firms were not disclosed for this transaction.