ORLANDO, Fla., Feb. 2, 2021 /PRNewswire/ -- AeroCare
Holdings, Inc. ("AeroCare") announced today that it has been
acquired by AdaptHealth Corp. (NASDAQ: AHCO) ("AdaptHealth").
The acquisition was consummated for total consideration
consisting of approximately $1.1
billion in cash and 31 million shares of AdaptHealth stock.
AeroCare's shareholders – including management and employees, and
private investors Peloton Equity ("Peloton"), SkyKnight Capital
("SkyKnight"), SV Health Investors and investment funds managed by
Morgan Stanley AIP Private Markets' Secondaries Team ("MS AIP
Private Markets") – will become shareholders in AdaptHealth as a
result of the transaction.
AeroCare Announces Completion of Acquisition by AdaptHealth
Founded in 2000 by CEO Steve
Griggs, and headquartered in Orlando, Florida, AeroCare is a leading
national technology-enabled respiratory and home medical equipment
("HME") distribution platform in the
United States. It offers a comprehensive suite of
direct-to-patient equipment and services including CPAP and BiPAP
machines, oxygen concentrators, home ventilators, and other durable
medical equipment products. AeroCare maintains extensive
relationships with leading national manufacturers and managed
healthcare plans, and services over 1,000,000 patients annually
from over 300 locations across 30 states, and online through
affiliated websites. Since inception, AeroCare has achieved 20
years of consecutive revenue growth, driven by a combination of
strong organic growth and targeted acquisitions.
The combined company will operate under the name AdaptHealth,
and Steve Griggs will serve as
co-CEO with Luke McGee, CEO of
AdaptHealth, to lead the company. In addition, Steve Griggs and shareholder designee
Ted Lundberg of Peloton will join
AdaptHealth's Board of Directors, which will expand to eleven
directors. Michael O'Rourke from
Peloton and Jordan Milich from
SkyKnight will join as observers to the board.
"I am very excited for AeroCare to join forces with
AdaptHealth," said AeroCare CEO, Steve
Griggs. "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."
Ted Lundberg, Co-Founding Partner
of Peloton Equity, added, "We are growth investors who back quality
management teams and companies in the healthcare industry that can
deliver value to patients and the healthcare system broadly. Our
partnership with AeroCare is a great example. Steve and his
team have built a strategic, high growth company that has leveraged
technology to transform a critical segment of the industry."
SkyKnight Managing Partner Matthew Ebbel said, "It has been a
privilege to partner with Steve
Griggs and AeroCare. We have been truly impressed with the
company's digital innovation and its consistent delivery of
high-quality care. We are very excited about the growth and value
creation opportunities ahead for the combined AdaptHealth, and we
look forward to working with Steve, Luke, and the AdaptHealth team
to help create the clear tech-enabled market leader in the HME
sector."
Tom Flynn, Managing Partner of SV
Health Investors, commented, "AeroCare and AdaptHealth have been at
the forefront of the industry's transition to technology-enabled
workflows that drive operational efficiency and better care. This
combination strengthens both companies and will benefit patients as
more healthcare moves to the home." Nash Waterman, co-head of the
secondaries group at MS AIP Private Markets added, "We partner with
leading managers like Peloton to back exceptional companies and
management teams. Our investment in AeroCare is a case in point,
and we are excited to be part of its next phase of growth."
AeroCare and its shareholders were advised by Morgan Stanley
& Co. LLC, Goodwin & Procter LLP, and Brown &
Fortunato, P.C. AdaptHealth was advised by Jefferies LLC, Truist
Securities, Inc., Willkie Farr &
Gallagher LLP and K&L Gates LLP.
About AdaptHealth Corp.
AdaptHealth is a leading provider of home healthcare equipment,
medical supplies to the home and related services in the United States. AdaptHealth provides a full
suite of medical products and solutions designed to help patients
manage chronic conditions in the home, adapt to life and thrive.
Product and services offerings include (i) sleep therapy equipment,
supplies and related services (including CPAP and bi PAP services)
to individuals suffering from obstructive sleep apnea, (ii) medical
devices and supplies to patients for the treatment of diabetes
(including continuous glucose monitors and insulin pumps), (iii)
home medical equipment (HME) to patients discharged from acute care
and other facilities, (iv) oxygen and related chronic therapy
services in the home, and (v) other HME medical devices and
supplies on behalf of chronically ill patients with wound care,
urological, incontinence, ostomy and nutritional supply needs.
AdaptHealth is proud to partner with an extensive and highly
diversified network of referral sources, including acute care
hospitals, sleep labs, pulmonologists, skilled nursing facilities,
and clinics. AdaptHealth services beneficiaries of Medicare,
Medicaid and commercial insurance payors. Upon the closing of the
AeroCare transaction, AdaptHealth now services nearly 3 million
patients annually in all 50 states through a network of over 500
locations across 46 states. Learn more at www.adapthealth.com.
About Peloton Equity
Formed in 2014, Peloton Equity, LLC (www.pelotonequity.com) is a
Connecticut-based private equity
firm that focuses exclusively on growth capital investments in the
healthcare industry. Peloton seeks companies with between
$20 and $200
million of revenue and the management team, market
opportunity and business model to grow revenues meaningfully over
the life of its investment. Peloton leverages its extensive
healthcare network and portfolio management playbook to support
management teams and add value to its portfolio companies. The
Peloton investment team worked together for over a decade prior to
forming Peloton and the team has been responsible for 33 portfolio
company investments across the healthcare industry representing
over $770 million of invested
capital.
About SkyKnight Capital
Founded in 2015, SkyKnight Capital manages over $1.5 billion in private equity capital on behalf
of leading institutional family offices, foundations, endowments,
and pensions. SkyKnight makes long-term investments into high
quality businesses in acyclical growth sectors alongside
exceptional management teams. More information is available at
www.skyknightcapital.com.
About SV Health Investors
SV Health Investors is a leading healthcare fund manager
committed to investing in tomorrow's healthcare breakthroughs. The
SV family of funds invests across stages, geographic regions, and
sectors, with expertise spanning biotechnology, dementia,
healthcare growth, healthcare technology and public equities. With
approximately $2.2 billion in assets
under management and a truly transatlantic presence with offices in
Boston and London, SV has built an extensive network of
talented investment professionals and experienced industry
veterans. Since its founding in 1993, SV has invested in more than
200 companies with more than 90 of these having achieved successful
acquisitions or IPOs. For more information please see
www.svhealthinvestors.com.
About Morgan Stanley AIP Private Markets
Morgan Stanley AIP Private Markets, an investment team within
Morgan Stanley Investment Management, seeks to deliver innovative
private market solutions to a global client base. Its
built-for-purpose investment team of 50 dedicated professionals
draws on decades of investment experience across the breadth of
private markets – including growth, buyouts, venture capital,
credit, and real assets. The team focuses on structurally,
compelling opportunities within less efficient markets and has
committed more than $20 billion
across more than 900 investments globally through December 31, 2020. For further information about
Morgan Stanley AIP Private Markets, please visit
www.morganstanley.com/im.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/aerocare-announces-completion-of-acquisition-by-adapthealth-301219622.html
SOURCE SkyKnight Capital