Protech works to build NIV business
By HME News Staff
Updated Wed August 12, 2020
CINCINNATI - Protech Home Medical has executed a non-binding letter of intent to acquire a private respiratory company in the Midwest reporting unaudited trailing annual revenues of about $5 million, positive adjusted EBITDA and positive net income.
The acquisition would expand Protech's presence in the Midwest, including adding a large new market, and increase the company's active patient count by more than 3,000.
“The acquisition would be immediately accretive to Protech's EBITDA and overall profitability and would continue to build scale on the top-line, which has not reached a run-rate of $100 million,” said Greg Crawford, chairman and CEO. “We are excited about the target's diverse payer mix with minimal Medicare exposure, and strong recurring revenue base and product mix.”
The acquisition target has a high acuity respiratory program that provides non-invasive ventilation in a 90-mile radius and that makes up one-third of its overall revenues.
Protech “feels strongly about bolstering its non-invasive ventilator volume as a percentage of its product mix, given the strong market fundamentals,” including CMS's decision earlier this year to remove the product category from Round 2021 of its competitive bidding program.
Protech expects to close the acquisition within the next 30 days.
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