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AdaptHealth to raise funds for general corporate purposes
Posted on Tuesday, 30 June 2020 09:35
AdaptHealth, one of the largest providers of home medical equipment in the US, is raising as much as USD 125.95 million for general corporate purposes that may include acquisitions.
The Pennsylvanian company is offering 6.50 million shares and has given underwriters a 30-day overallotment option for a further 975,000 stocks.
Jefferies, Deutsche Bank Securities and UBS Investment Bank are acting as joint bookrunning managers, while RBC Capital Markets and Stifel are senior comanagers and Canaccord Genuity and Regions Securities are co-managers.
Along with funding potential acquisitions, proceeds will also bankroll business opportunities, capital expenditures and working capital.
The offering is not dependent on the previously announced purchases of Solara Medical Supplies and ActivStyle Holdings for USD 425.00 million and USD 62.00 million, respectively.
Shares in AdaptHealth fell 4.2 per cent to USD 16.14 yesterday and a market capitalisation of USD 1.20 billion following the announcement, though they are up 46.9 per cent since the start of 2020 (2nd January 2020: USD 10.99).
The company mainly focuses on providing: sleep therapy equipment, supplies and related services to individuals suffering from obstructive sleep apnea; and home medical apparatus to patients discharged from acute care and other facilities.
It also supplies oxygen and related chronic treatment; and medical devices and supplies on behalf of chronically ill patients with diabetes care, wound care, urological, ostomy and nutritional needs.
As of 31st March 2020, AdaptHealth provided services to over 1.60 million patients annually in all 50 states through a network of 220 locations in 38 states.
Once it closes the acquisitions of Solara and ActivStyle, the company expects to cater to more than 1.70 million people annually.
Net revenue reached USD 529.64 million in the 12 months ended 31st December 2019 and USD 191.44 million in Q1 2020.
AdaptHealth incurred attributable net loss of USD 15.00 million in FY 2019 and of USD 158,000 in Q1 2020.
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