Aeroflow searches for synergies

ASHEVILLE, N.C. - Aeroflow Healthcare's new division Aeroflow Ventures is a vehicle for growing the company's core businesses through acquisitions and investing in other companies that could benefit from its strengths, says CFO Scott Sonnone.

“We see a lot of opportunity where we are not in that business, and they are looking for capital,” he said. “There have to be synergies—maybe we can help with marketing or our development and technology platforms can accelerate what they are trying to do. Where it makes sense, we'll make an equity investment.”

Those opportunities include businesses both within and outside of health care, and could range from a local business in its own backyard of Asheville, N.C., to something located elsewhere in the U.S., says Sonnone.

Aeroflow Healthcare, which has landed on the Inc. 5000 list of fastest growing companies for the past three years, also hasn't ruled out expanding into other areas of HME. While it started in 2001 as a home oxygen company, these days its three major businesses are mom and baby, urological and sleep therapy.

“There are segments we can see getting into in the future,” he said. “Certain businesses, like oxygen, you have to have physical assets and people on the ground, but with diapers (for example), we've got FedEx.”

The sleep division, in particular, has grown through acquisition in the past three or four years, and that's something the provider will continue through the new division, says Sonnone.

“I think everybody knows, if they want to sell their CPAP business, we are on their short list,” he said.

The launch of Aeroflow Ventures during the COVID-19 pandemic, however, has meant slowing down activity as the company waits to see how things shake out in the coming months, says Sonnone.

“We have a pipeline, but we're not actively soliciting acquisitions,” he said. “Unfortunately, there are some companies this has taken a toll on. If we can help them and it's a win-win, great. We'll probably see more investment opportunities from companies that didn't need cash before all this happened.”