AdaptHealth Corp. a home medical equipment (HME) provider, is set to acquire the Patient Care Solutions business from McKesson Corp. The total investment, including restructuring costs until the business is fully integrated on AdaptHealth’s platform in the latter half of 2020, is expected to be approximately $30 million.
PCS currently provides wound care supplies, ostomy supplies, urological supplies, incontinence supplies, diabetic care supplies, and breast pumps directly to patients across the United States. The company maintains extensive national relationships with physicians, medical facilities and customers, and currently serves all 50 states.
For the trailing twelve months ended October 31, 2019, PCS generated net revenues of approximately $134 million. In connection with the acquisition, AdaptHealth will enter into a supply and distribution agreement with McKesson with respect to PCS’s HME service lines.
“The acquisition of PCS will, upon closing, represent an important step in our continuing growth as an industry consolidator,” said AdaptHealth CEO Luke McGee. “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.”
President and COO of AdaptHealth Josh Parnes added, “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.”
