Protech
  • Protech Home Medical (PTQ) has executed a non-binding letter of intent to acquire a private US respiratory care company
  • The acquisition would increase Protech’s active patient count by over 3,000, and increase annual revenue by approximately C$5 million
  • According to the LOI, Protech expects to pay for the acquisition with an undisclosed cash amount
  • Subject to necessary approvals, due diligence, final negotiations, and a definitive agreement, the acquisition should close within 30 days
  • Protech Home Medical (PTQ) is up 1.80 per cent and is trading at C$1.13 per share

Protech Home Medical (PTQ) has executed a non-binding letter of intent to acquire a private US respiratory care company.

Whilst unnamed, the target company is based in the United States’ Midwest, and a leader in respiratory home care services. With many patients suffering from ALS or chronic obstructive pulmonary disease, its major focus is non-invasive ventilation therapy and sleep devices.

The acquisition would increase Protech’s active patient count by over 3,000, and boost the company’s presence in the American Midwest. It would also increase Protech’s annual revenues by approximately C$5 million.

Protech’s Chairman and CEO, Greg Crawford, is thrilled to add a substantial Midwest-based respiratory care provider to the Protech family.

“The acquisition would be immediately accretive to Protech’s EBITDA and overall profitability, and would continue to build scale on the top-line which has now reached a run-rate of $100 million.

“We are excited about the target’s diverse payor mix with minimal Medicare exposure, strong recurring revenue base, and product mix. We will use our operational expertise, leveraging our first-rate infrastructure to achieve profit growth through our integration platform. 

“We will continue to be active on the acquisition front as we focus on increasing market penetration in our existing markets and adding new markets into the system,” he said.

According to the LOI, Protech expects to close the acquisition for cash at a reasonable multiple, which would gradually improve EBITDA and net income. 

Subject to necessary approvals, due diligence, final negotiations, and a definitive agreement, the acquisition should close within 30 days.

Protech Home Medical (PTQ) is up 1.80 per cent and is trading at C$1.13 per share at 1:54pm EDT.

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