Wednesday, April 19, 2023
Viemed Healthcare, Inc., a national leader in respiratory care and technology-enabled home medical equipment services, announced that it has entered into a definitive agreement to acquire Tennessee based Home Medical Products, Inc. (“HMP”), a large regional provider of respiratory focused home medical solutions.
“We are incredibly excited to complement our strong history of organic growth by combining great teams through accretive transactions” said Viemed Chief Executive Officer Casey Hoyt. “The purchase of HMP will launch our acquisition growth initiatives with a stellar organization that has an extraordinary reputation with patients, payors, and physicians. Above all, the team at HMP shares our same driving passion for innovative patient-focused care.”
Home Medical Products, Inc. was founded in September 2004 seeking to offer residents of local communities quality solutions for medical equipment in the home – solutions that would help people live life better. HMP has expanded its programs and services to partner more effectively with physicians, hospitals, and other healthcare partners in order to facilitate quality care plans for patients in their homes that lead to innovative solutions and improved health outcomes. The organization currently manages numerous medical equipment offices throughout Tennessee and in Alabama and Mississippi. Founder David Steele, Chief Executive Officer Jason Shiflet, and the HMP team are expected to join Viemed upon the completion of the transaction.
“We are exceptionally proud of the work that we have done to build HMP into the patient-centered organization that it is today” said Steele. “We are now thrilled to become part of the Viemed family, allowing even greater expansion of care. We have a tremendous amount of respect for the management team and culture at Viemed and we are very excited to leverage the talent and resources of the combined companies.”
In 2022, HMP generated net revenues of approximately $28 million and HMP Adjusted EBITDA of approximately $6.8 million. See “Non-GAAP Financial Measures” for a discussion of HMP Adjusted EBITDA. The transaction is expected to close in June 2023 with a purchase price of approximately $31.75 million, adjusted for net working capital and other customary closing adjustments. Viemed expects to fund the acquisition through a combination of cash on hand and borrowings from its existing undrawn credit facilities.