Phoenixville-based AdaptHealth Corp., the country’s third-largest home medical equipment (HME) provider, recently entered into an agreement with McKesson Corp. to acquire its Patient Care Solutions (PCS) business.
PCS provides breast pumps, diabetic care supplies, incontinence supplies, ostomy supplies, urological supplies, and wound-care supplies, directly to patients.
“The acquisition of PCS will, upon closing, represent an important step in our continuing growth as an industry consolidator,” Luke McGee, AdaptHealth’s CEO, said. “In addition to adding scale and strengthening our geographic footprint, we will add urological and ostomy products to our already comprehensive HME product portfolio, and significantly increase our exposure in areas such as wound care, breast pumps, incontinence supplies, and diabetic care. We believe the addition of these products will double our overall addressable market.”
The transaction is subject to closing conditions and is expected to be finalized next month. In addition, AdaptHealth will enter into a supply and distribution agreement with McKesson.
PCS will be fully integrated on AdaptHealth’s platform in the latter half of 2020. The company is expected to invest approximately $30 million, including restructuring costs, until integration is complete.
PCS had net revenues totaling approximately $134 million for the year ending Oct. 31.
AdaptHealth provides products for patients with chronic conditions.