US-based home medical equipment (HME) provider AdaptHealth has signed a definitive agreement to acquire the Patient Care Solutions (PCS) business from McKesson, a Germany-based healthcare and pharmaceutical company.
McKesson’s PCS currently offers wound care supplies, ostomy supplies, urological supplies, incontinence supplies, diabetic care supplies, and breast pumps.
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 will sign a supply and distribution agreement with McKesson
The HME provider said that it would invest a total of approximately $30m, including restructuring costs to fully integrate McKesson’s PCS business on its platform, in the latter half of 2020.
The transaction is expected to be completed in December 2019, subject to the satisfaction of customary closing conditions.
Also, as part of the transaction, the company will enter sign a supply and distribution agreement with McKesson for the PCS’s HME service lines.
PCS claims that it maintains extensive national relationships with physicians, medical facilities and customers, across all 50 states in the US, and has generated approximately $134m in net revenues, for a twelve-month period ended October 31, 2019.
AdaptHealth offers a full range of medical products and solutions designed to assist patients in managing chronic conditions in the home, adapt to life and thrive.
The company’s products and services include sleep therapy equipment, respiratory equipment, mobility equipment, wheelchairs, walkers, and hospital beds, in addition to the custom bracing services, hospice-focused HME services wound therapy and nutritional HME services.
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.”
