AdaptHealth Corp. to Acquire North Carolina-based Advanced Home Care
December 09 2019 - 7:00AM
Business Wire
AdaptHealth Corp. (NASDAQ: AHCO) (“AdaptHealth”), the third
largest home medical equipment company (HME) in the United States,
today announced that it has entered into a definitive agreement
with Advanced Home Care (AHC) to acquire its home medical equipment
business. The proposed transaction is expected to close in the
first quarter of 2020 and is subject to the satisfaction of
customary closing conditions.
AHC provides home medical equipment including CPAP and BiPAP
machines and supplies, oxygen, ventilation and traditional durable
medical equipment to patients through its 23 branch locations in
Georgia, North Carolina, South Carolina, Tennessee and Virginia.
AHC is currently a joint-venture of twelve regional healthcare
systems, with whom AdaptHealth expects to have ongoing business
relationships following the closing of the transaction.
For the trailing twelve months ended September 2019, the home
medical equipment business of AHC generated net revenues of $83
million.
Upon closing, AHC’s HME provider business will be integrated
into AdaptHealth, further expanding AdaptHealth’s footprint in the
Southeast. In connection with the transaction, AdaptHealth expects
to sign a long-term lease for AHC’s High Point, N.C. headquarters.
Seasoned leaders of the AHC executive team are expected to join the
AdaptHealth leadership team.
“The Southeast represents an important market for AdaptHealth,
and we are excited to expand our presence through our acquisition
of Advanced Home Care’s HME business,” AdaptHealth President and
COO, Josh Parnes states. “Advanced Home Care is a true leader in
the industry, and we look forward to welcoming members of the
management team to AdaptHealth and continue enhancing the products
and services we’re able to provide to patients and healthcare
professionals throughout the region.”
“Advanced Home Care has been fortunate to serve our communities
since 1983,” said Joel Mills, CEO of Advanced Home Care. “In
AdaptHealth, we believe we have found a forward-thinking team that
will allow us to continue to provide patients and our healthcare
system partners with quality products, expanded offerings, and the
highest degree of service. We couldn’t be more excited to join
AdaptHealth.”
About AdaptHealth Corp.
AdaptHealth Corp. (“AdaptHealth”) is the third largest home
medical equipment company in the United States. AdaptHealth
provides a full suite of medical products and solutions designed to
help patients manage chronic conditions in the home, adapt to life
and thrive. Product and services offerings include: sleep therapy
equipment (CPAP and BiPAP machines and supplies), respiratory
equipment (including oxygen, invasive and non-invasive
ventilation), mobility equipment, wheelchairs, walkers, and
hospital beds. AdaptHealth also provides custom bracing services,
hospice-focused HME services, wound therapy and nutritional HME
services. The company is proud to partner with an extensive and
highly-diversified network of referral sources, including acute
care hospitals, sleep labs, pulmonologists, skilled nursing
facilities, and clinics. AdaptHealth services beneficiaries of
Medicare, Medicaid and commercial insurance payors. As of September
30, 2019, AdaptHealth services over one million patients annually
in 49 states through its network of 189 locations. Learn more at
www.adapthealth.com.
Forward-Looking
Statements
This press release includes certain statements that are not
historical facts but are forward-looking statements for purposes of
the safe harbor provisions under the United States Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally are accompanied by words such as “believe,”
“may,” “will,” “estimate,” “continue,” “anticipate,” “intend,”
“expect,” “should,” “would,” “plan,” “predict,” “potential,”
“seem,” “seek,” “future,” “outlook,” and similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding projections,
estimates and forecasts of revenue and other financial and
performance metrics and projections of market opportunity and
expectations. These statements are based on various assumptions and
on the current expectations of AdaptHealth Corp. management and are
not predictions of actual performance. These forward-looking
statements are provided for illustrative purposes only and are not
intended to serve as, and must not be relied on, by any investor
as, a guarantee, an assurance, a prediction or a definitive
statement of fact or probability. Actual events and circumstances
are difficult or impossible to predict and will differ from
assumptions. Many actual events and circumstances are beyond the
control of AdaptHealth Corp. These forward-looking statements are
subject to a number of risks and uncertainties, including the
outcome of judicial and administrative proceedings to which
AdaptHealth Corp. may become a party or governmental investigations
to which AdaptHealth Corp. may become subject that could interrupt
or limit AdaptHealth Corp.’s operations, result in adverse
judgments, settlements or fines and create negative publicity;
changes in AdaptHealth Corp.’s clients’ preferences, prospects and
the competitive conditions prevailing in the healthcare sector. A
further description of such risks and uncertainties can be found in
the Company’s filings with the Securities and Exchange Commission.
If the risks materialize or assumptions prove incorrect, actual
results could differ materially from the results implied by these
forward-looking statements. There may be additional risks that
AdaptHealth Corp. presently knows or that AdaptHealth Corp.
currently believes are immaterial that could also cause actual
results to differ from those contained in the forward-looking
statements. In addition, forward-looking statements reflect
AdaptHealth Corp.’s expectations, plans or forecasts of future
events and views as of the date of this press release. AdaptHealth
anticipates that subsequent events and developments will cause
AdaptHealth Corp.’s assessments to change. However, while
AdaptHealth Corp. may elect to update these forward-looking
statements at some point in the future, AdaptHealth Corp.
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing AdaptHealth Corp.’s assessments as of any date
subsequent to the date of this press release. Accordingly, undue
reliance should not be placed upon the forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20191209005098/en/
AdaptHealth Corp. Brittany Lett Vice President, Marketing
(909) 915-4983 blett@adapthealth.com The Equity Group Inc.
Devin Sullivan Senior Vice President (212) 836-9608
dsullivan@equityny.com Kalle Ahl, CFA Vice President (212) 836-9614
kahl@equityny.com
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