Expands operating footprint in the Midwest with 9 additional locations in Kansas and Missouri
Represents the addition of over 2,500 patients to Great Elm Healthcare’s active patient base
WALTHAM, Mass., March 02, 2021 (GLOBE NEWSWIRE) — Great Elm Group, Inc. (“we,” “us,” “our,” “GEG,” or “Great Elm”) (NASDAQ: GEG), a diversified holding company, announced today that Focus Respiratory, LLC, a subsidiary of Great Elm Healthcare, LLC (“GEHC”) (the “Company”), acquired Advanced Medical DME, LLC and PM Sleep Lab, LLC, providers of sleep testing, PAP, 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 U.S., 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 PAP 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,” stated Peter A. Reed, Chief Executive Officer of Great Elm Group Inc., parent company of GEHC. “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.”
About Great Elm Healthcare, LLC and Great Elm Group, Inc.
Great Elm Healthcare, LLC is a wholly owned subsidiary of Great Elm DME, Inc., which is an 80.1%-owned subsidiary of Great Elm Group, Inc. Great Elm Healthcare, LLC provides durable medical equipment to customers with respiratory needs in the Pacific Northwest (including Alaska), Arizona, and the Midwestern U.S. Great Elm Healthcare, LLC also operates sleep testing centers and provides power mobility and other home medical equipment. As of December 31, 2020, Great Elm Healthcare, LLC had over 67,000 active, billable respiratory patients across six states through its network of 25 locations.
Great Elm Group, Inc. (NASDAQ: GEG) is a publicly-traded holding company that is building a business across two operating verticals: investment management and operating companies. Great Elm Group, Inc.’s website can be found at www.greatelmgroup.com.
The M&A market for healthcare companies continues to strengthen in 2021. There is unprecedented capital in market, the lowest interest rates in US history and strong acquirer motivations for high quality healthcare companies. Across the continuum of care, buyers and investors are looking for well established, profitable businesses and offering strong valuations and options for management.
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