Focus Respiratory LLC, a subsidiary of holding company Great Elm Group Inc, has acquired Advanced Medical DME LLC and PM Sleep Lab LLC, providers of sleep testing, positive airway pressure systems, and other respiratory products and services in nine locations throughout Kansas and Missouri. On a combined basis, the acquired entities reported pro forma unaudited revenues of approximately $5 million in 2020.
The acquisition of these entities expands the company’s existing operating footprint in the Midwestern United States, with the addition of six locations in Kansas and entry into Missouri with three locations. The addition of over 2,500 active patients meaningfully increases the patient base to which the company will provide a full range of respiratory durable medical equipment and CPAP resupply. The company will also have the opportunity to introduce ventilator and oxygen services to the acquired markets and gain additional referral opportunities from the new networks. The acquisition also presents potential operating efficiencies and procurement savings through better pricing and volumes.
“The acquisitions of Advanced Medical DME LLC and PM Sleep Lab, LLC fit our strategy of pursuing tuck-in acquisitions of respiratory-focused companies that expand and enhance our geographic footprint as we seek to gain scale and increase operating leverage in areas where we have an existing presence,” says Peter A. Reed, CEO of Great Elm Group Inc, parent company of GEHC, in a release. “We were attracted to the companies’ patient-centered philosophy and their talented managers and staff. We welcome these new patients and employees to the Great Elm Healthcare family and look forward to extending our offerings throughout Kansas and Missouri.”