Home infusion: Interest still high, inventory still low

YARMOUTH, Maine – A handful of recently announced deals underscores the continued appetite for home infusion companies propelled by the COVID-19 pandemic, say M&A analysts. 

Option Care Health recently announced it acquired Wasatch Infusion and entered into an agreement to acquire Specialty Pharmacy Nursing Network. 

“Option Care has been doing deals for 20 years and I don’t think that’s going to stop – they continue to fill out their geographic footprint,” said Michael Patton, managing director with Provident Healthcare Partners. “There’s just not as much inventory as there was.” 

Private equity firms also remain interested in the home infusion space. Within the last six months, One Equity Partners completed a strategic investment in InfuCare Rx; and Waud Capital Partners said it would acquire PromptCare, a provider of both respiratory and infusion services valued in the $400 million range. 

More recently, Ridgemont Equity Partners announced it has acquired American Outcomes Management, a specialty infusion provider of IVIG therapy. 

“Private equity is as strong or stronger than ever in the world of infusion,” said Jonathan Sadock, managing partner with Paragon Ventures. “(For AOM), the tailwinds have gotten to the point where it made sense from a growth perspective (to sell).” 

Smaller deals are also being done under the radar, says Patton, but there’s still a threshold around scale. 

“It’s still a very fragmented market,” he said. “We come across a lot (of companies) looking to do a deal, but we need to find ones of scale that we can work with. We wouldn’t work with anyone under the $4 to $5 million range.” 

The home infusion market – and buyer interest – will continue to grow, say analysts, who point to an ongoing pandemic that has pushed patients to the home setting and an aging population with chronic conditions that increasingly can be managed there. 

“We believe the demand is there,” said Pat Clifford, managing director, home medical equipment, for The Braff Group. “It’s still an attractive delivery channel and a positive in the DMEPOS space and (buyers) are taking notice.”