M&A: Teijin 'nibbling'

It remains to be seen whether BioSolutions will make any inroads into the HME market, but that got us wondering about another foreign-based company: Teijin.

The Tokyo-based respiratory giant made a splash in 2008, when it acquired three separate HME companies: Amherst, N.Y.-based Associated Healthcare Systems, Glen Falls, N.Y.-based Home Therapy Equipment; and Bakersfield, Calif.-based Braden Partners, which does business as Pacific Pulmonary Services.

But what have they been up to since then?

"They've been nibbling all along, but to my knowledge, they haven't done a tremendous amount of deals," said Bob Leonard, an analyst with The Braff Group, a Pittsburgh-based M&A firm. "They have a laundry list of places that they are interested in, but it's pretty broad."

Most deals they've done have been through Pacific Pulmonary, which is mainly based on the West Coast. It appears they are looking to continue to grow contiguously, say industry analysts.

"They are looking at smaller stuff that they can consolidate into existing markets, is my understanding," said Rick Glass, president of Steven Richards & Associates, a Tarpon Springs, Fla.-based M&A firm. "I don't think they are to looking to go into any new areas."

Pacific Pulmonary is ranked third in total Medicare reimbursement for oxygen concentrators--a position it has held since the HME Databank began tracking the data in 2006. In 2009, the most recent year for which data is available, the provider billed $31,890,193. No. 1 Lincare, by contrast, billed $148,837,850, and No. 2 Apria billed $34,926,054."