Business & Finance
AdaptHealth plans to close acquisition of PCS business in December 2019
25 November 2019 -

Home medical equipment company AdaptHealth Corp (NASDAQ:AHCO) revealed on Friday that it has entered into a definitive agreement to acquire the Patient Care Solutions (PCS) business from McKesson Corporation.

Subject to customary closing conditions, the acquisition is expected to close in December 2019.

AdaptHealth stated that the total investment, including restructuring costs until the business is fully integrated on AdaptHealth's platform in the latter half of 2020, is anticipated to be approximately USD30m.

PCS provides wound care supplies, ostomy supplies, urological supplies, incontinence supplies, diabetic care supplies and breast pumps directly to patients across the US. The company said it maintains extensive national relationships with physicians, medical facilities and customers, currently serving all 50 states. For the trailing 12 months ended 31 October 2019, it generated net revenues of about USD134m.

Under the terms of the agreement, AdaptHealth will sign a supply and distribution agreement with McKesson Corporation with respect to PCS's HME service lines.