AeroCare offers products such as CPAP and BiPAP machines, oxygen concentrators and home ventilators


The transaction amount includes around $1.1bn and 31 million shares of AdaptHealth stock. (Credit: Nappiness from Pixabay)

AdaptHealth has completed the acquisition of technology-enabled respiratory and home medical equipment (HME) distribution platform AeroCare Holdings.

The transaction amount includes around $1.1bn and 31 million shares of AdaptHealth stock.

The deal also allows AeroCare’s shareholders such as management and employees, as well as private investors Peloton Equity, SkyKnight Capital, SV Health Investors and investment funds managed by Morgan Stanley AIP Private Markets’ Secondaries Team to become shareholders in AdaptHealth.

Based in Orlando of Florida, AeroCare provides a suite of direct-to-patient equipment and services such as including CPAP and BiPAP machines, oxygen concentrators, home ventilators, and other durable medical equipment products.

AeroCare is said to have extensive relationships with national manufacturers and managed healthcare plans, and services more than 1,000,000 patients per annum from over 300 locations across 30 states in the US.

The combined company will be operated under the name AdaptHealth.

AeroCare CEO Steve Griggs said: “The combined company is positioned to transform our industry and positively impact the lives of chronically ill patients across the country.

“Our management team and employees look forward to working with AdaptHealth to build an even stronger business, sharing best practices across each organization to drive operational efficiencies and create enhanced opportunities for our patients, referral sources and other stakeholders.”

Morgan Stanley, Goodwin & Procter and Brown & Fortunato have advised AeroCare and its shareholders, while Jefferies, Truist Securities, Willkie Farr & Gallagher and K&L Gates have advised AdaptHealth.

AdaptHealth offers home healthcare equipment, medical supplies to the home and related services.

In January 2020, AdaptHealth completed the acquisition of Patient Care Solutions (PCS) business from Germany-based healthcare firm McKesson.