AdaptHealth expands supplies portfolio

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Friday, November 22, 2019

PLYMOUTH MEETING, Pa. – AdaptHealth has entered into a definitive agreement to buy McKesson’s Patient Care Solutions (PCS) business, adding urological and ostomy supplies to its growing product portfolio.

PCS will also increase AdaptHealth’s presence in the markets for wound care, incontinence and diabetes supplies, as well as breast pumps.

“The acquisition of PSC will represent an important step in our continuing growth as an industry consolidator,” said Luke McGee, CEO of AdaptHealth. “We believe the addition of these products will double our overall addressable market.”

PCS, which maintains national relationships with physicians, medical facilities and customers, generated net revenues of about $134 million for the trailing 12 months ended Oct. 31, 2019.

Also part of the deal: AdaptHealth will enter into a supply and distribution agreement with McKesson for PCS’s HME service lines.

“We are very pleased to expand our existing distribution relationship with McKesson,” said Josh Parnes, president and COO of AdaptHealth. “The acquisition of PCS complements our existing PAP resupply offering and will allow us to provide an expanded set of supplies to both the current customers of PCS and AdaptHealth.”

AdaptHealth’s total investment in PCS, including restructuring costs until the business is fully integrated in the second half of 2020, is expected to be $30 million.

Adapt Health, the result of a merger with DFB Acquisitions, recently went public and is listed on the NASDAQ under AHCO.