Jones Medical Supply sees a potential landscape for expansion with its first ever acquisition, Sells Medical Equipment, says Jason Jones.
Sells Medical is in Greenville, Ala., about one hour west of Jones Medical’s Troy location, and serves a rural area covering several counties.
“Western Alabama is more rural the farther west you drive,” said Jones, president. “You can drive for 50 minutes and not find a hospital or DME company. There’s a lot of growth potential, once we get settled, to continue west.”
As of Jan. 1, Sells Medical is operating under the Jones Medical Supply name, and Jones has already hired an additional delivery tech.
Jones Medical, which launched in 2005, wasn’t looking to buy another company per se, considering the current environment, Jones said.
“We’re still trying to survive COVID and the CPAP recall, so the last thing on my mind was expanding, but once (Chris Sells and I) got to talking, (it felt like the right move),” he said. “I have looked at some others in the past and things didn’t work out, but this one was different from the start.”
Making it different: a dedicated staff of long-time employees; a complementary focus on CPAP and oxygen; and the opportunity to add new product lines, says Jones.
“They do power mobility, back braces and diabetic shoes,” he said. “Dana Carlton (general manager for Sells) is a certified fitter. We’ll try to incorporate that, marketing it locally. We can bounce it over to Greenville and ensure those patients are taken care of in Troy.”
Despite the current chaos, Jones says the HME industry is in the right place for future growth.
“COVID is a respiratory disease and there are people needing oxygen and nebulizers,” he said. “The need is there and we can meet the need and it’s going to last.”
The M&A market for healthcare companies continues to strengthen in 2022 ahead of projected increases in US capital gains taxes. 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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