What To Know
- The MME management team has successfully transitioned MME from a relatively small medical equipment company to a clinical respiratory company with its product mix at over 85% respiratory, possessing a large selection of respiratory and home medical equipment to meet the needs of today’s patients at home.
- “We are delighted to close on the acquisition of MME, which provides us with a solid foundation from which to grow in the State of Florida, representing a major milestone for our company,” said Greg Crawford, Chairman and CEO of Protech Home Medical.
February 2, 2021
Protech Home Medical a U.S. based leader in the home medical equipment industry focused on end-to-end respiratory care, announced that it has acquired Florida based Mayhugh’s Medical Equipment, reporting unaudited trailing 12-month annual revenues of approximately $7 million, Adjusted EBITDA (defined below) of $1.2 million, and positive net income.
Excluding the impact of future acquisitions, and organic growth derived from continuing operations, we are pleased to share the following selected financial and operating metrics for Protech Home Medical following the closing of the acquisition of MME:
- Run-Rate Revenue of $130-$135 million;
- Run-Rate Adjusted EBITDA of $26-$30 million;
- 120,000 current active patients;
- 17,000 unique referrals; and
- 49 locations across 11 U.S. States.
MME is a leader in the respiratory home care services industry in Northern Florida and will add over 10,000 active patients to Protech’s patient population. Furthermore, MME represents Protech’s entrance into its 11th U.S. State with its 49th location. MME gives Protech immediate access to Jacksonville, an attractive metro hub in which it will leverage its existing infrastructure to create significant cross-selling and patient growth opportunities.
The MME management team has successfully transitioned MME from a relatively small medical equipment company to a clinical respiratory company with its product mix at over 85% respiratory, possessing a large selection of respiratory and home medical equipment to meet the needs of today’s patients at home.
The staff delivers on a high touch service model, aligned with Protech’s existing model, and is continually educating their patient base to ensure strong compliance of equipment. In addition, MME gives Protech Home Medical the ability to immediately add over 5,000 patients from its patient base to Protech’s existing subscription-based resupply program and Protech expects to derive strong revenue synergies from this initiative.
MME has a diverse payor mix with no more than 50% coming from a particular payor source.
Under the terms of the definitive purchase agreement, Protech acquired MME for total consideration of approximately $5.8 million. Post integration, it is expected that MME will increase Protech’s annual revenues by approximately $7 million and Adjusted EBITDA by $1.4 to $1.8 million. Leveraging existing infrastructure and payor contracts, Protech expects to achieve additional revenue generated from organic growth, cross selling and corporate synergies.
“We are delighted to close on the acquisition of MME, which provides us with a solid foundation from which to grow in the State of Florida, representing a major milestone for our company,” said Greg Crawford, Chairman and CEO of Protech Home Medical. “We are excited to add another turn-key respiratory home care operator to our family of companies, with MME being a logical fit for Protech.”
He adds, “We expect a smooth integration process and will move quickly to capture the tremendous amount of synergies, beginning with adding 5,000 patients to our subscription re-supply model, which will provide an immediate revenue driver for us. MME is immediately accretive, similar to our deep pipeline of potential acquisition targets, which we expect to be very busy moving through the funnel in the months to come.”
Protech Home Medical Chief Financial Officer, Hardik Mehta added, “MME’s heavily weighted respiratory product mix, and diversification of the payor mix, provides Protech with a stable foundation to start its Florida operations. We are excited to have the opportunity to penetrate the attractive Jacksonville market and have already begun the integration process. We will look to grow our scale in Florida both organically and through strategic bolt-on opportunities that present themselves.
“Mehta concluded, “We believe MME is just the beginning of what will be an aggressive acquisition pace for us over the remainder of 2021, including potential larger revenue opportunities as we look to accelerate our scale beyond the current run-rate revenue we have.”
The Company had originally announced a non-binding letter of intent with MME on January 5, 2021.