Protech Home Medical

  • Simplifying the Patient Experience!

  • 859-300-6455

    investorinfo@myphm.com

  • 1019 Town Drive

    Wilder, KY 41076

  •   9:00AM EST

PROTECH HOME MEDICAL ANNOUNCES HIGHLY ACCRETIVE ACQUISITION OF COOLEY MEDICAL, INC. AND UPDATE ON GROWING M&A PIPELINE

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

Cincinnati, Ohio – October 15, 2019 – Protech Home Medical Corp. (“Protech” or the “Company”) (TSXV: PTQ), a healthcare services company with operations in the U.S., is pleased to announce that it has acquired Cooley Medical, Inc. (“CMI”), a company based in Kentucky.

Acquisition Details

CMI is a leader and top provider of respiratory services in Eastern and Central Kentucky with six locations that, when combined with the Company’s current operations, will significantly expand Protech’s geographical footprint and will provide services to an additional 34 counties in the state of Kentucky, eight in Indiana and five in Virginia. CMI has a substantial patient count with more than 13,000 active patients to whom it delivers more than 17,000 pieces of rental equipment annually. Under the terms of the definitive purchase agreement, Protech will acquire CMI for total cash consideration of approximately $3.1 million and the assumption of approximately $0.9 million of debt.

After an initial transition and integration period, CMI is expected to increase Protech’s annual revenues by approximately $9 million and increase Adjusted EBITDA by $1.6 to $1.9 million. When combined with the Company’s existing operations, Protech expects, its annualized run-rate revenue to be between $95 to $97 million and Adjusted EBITDA to be between $17 to $19 million.

“CMI is the type of accretive acquisition we’re going to continue to pursue given our strong balance sheet and ability to transact on larger opportunities,’ said Greg Crawford, Chairman and CEO of Protech. “The CMI acquisition is expected to be immediately accretive to revenue and Adjusted EBITDA as we use our regional expertise and infrastructure to achieve revenue and profit growth through our integration platform. These types of acquisitions are expected to significantly increase our penetration in our existing markets for marginal incremental cost and will continue to be one of our core strategies going forward. We are particularly delighted by CMI’s product mix as it is largely focused on the respiratory market which we have a particular affinity towards given its extremely positive fundamentals.”

M&A Pipeline Update

As previously announced, the Company is focused on the implementation of its corporate strategy that incorporates technology, organic growth and strategic acquisitions to continue to improve upon its recent financial results. Following the closing of the CMI acquisition, the Company will have more than $9 million in cash to continue to pursue additional acquisitions that will continue to focus on strategic locations driven by product mix, distribution volumes and the ability to consolidate distribution channels to drive operating efficiencies and maximize earnings accretion.

“We continue to build our pipeline of qualified acquisition targets,” said Hardik Mehta, CFO of Protech. “At present, we are in active negotiations with companies that, if consummated, would add additional revenue to Protech. Additionally, we continue to source new deals. With many high-quality acquisition targets to choose from, we will continue to be extremely disciplined in terms of those acquisitions we pursue with particular focus on those where we can achieve favorable pricing and optimal accretion.”



  Posted by:

PHM Admin