PROTECH ANNOUNCES ACCRETIVE ACQUISITION OF ACADIA MEDICAL, INC. AS THE COMPANY NEARS $100 MILLION OF RUN RATE REVENUE
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 – December 4, 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 Acadia Medical, Inc. (“AMI”), a company based in Maine.
AMI is a leader and top provider of respiratory services in the State of Maine. It currently has four locations and will allow Protech to further expand its geographical footprint and provide a larger number of services in the State of Maine. Protech will acquire AMI for total cash consideration of approximately $2.1 million and the assumption of approximately $0.2 million of debt.
After an initial transition and integration period, AMI is expected to increase Protech’s annual revenues by approximately $4 million and increase Adjusted EBITDA by approximately $0.8 million. When combined with the Company’s existing operations, Protech expects its annualized run-rate revenue to be between $99 and $103 million and annualized Adjusted EBITDA to be between $18.2 and $20.2 million.
“We are extremely thrilled to announce this acquisition that will in all likelihood put us in the vicinity of achieving an annual revenue run rate in excess of $100 million. The acquisition of AMI is another example of the types of strategic acquisitions we're going to continue to pursue,” said Greg Crawford, Chairman and CEO of Protech. “The acquisition is immediately accretive, increasing revenue and EBITDA as we use our regional expertise and infrastructure to achieve revenue and profit growth through our integration platform. These types of acquisitions are an effective way to increase market penetration in our existing markets for marginal incremental cost and will continue to be one of our core strategies to continue to augment our growth. We are particularly excited about AMI’s product mix which is largely focused on the respiratory market, with which we have a particular affinity given its extremely positive market fundamentals.”
M&A Pipeline Update
As previously announced, Protech is focused on the implementation of its corporate strategy that incorporates technology, organic growth and strategic acquisitions to continue to improve upon its financial results. Following the closing of the AMI acquisition, the Company now has more than $8 million in cash to continue to pursue additional acquisitions that will focus on strategic and geographic 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. “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.”