Protech Home Medical Corp. (“
Protech” or the
“
Company”) (TSXV: PTQ), (OTCQX: PTQQF), a U.S.
based leader in the home medical equipment industry, focused on
end-to-end respiratory care, today announced it has executed a
non-binding letter of intent (the “
LOI”) to
acquire a private respiratory care company in the Southern United
States reporting unaudited trailing 12-month annual revenues of
approximately $7 million, positive adjusted EBITDA, and positive
net income.
Acquisition Details
The target company has been a leader in the
respiratory home care services industry within the area it operates
in the Southern United States for over 20 years. The target company
would serve as an entry for Protech into the new Southern State,
adding over 10,000 active patients and a location within 10 minutes
of a major metropolitan hub. Protech would begin to build its
presence in this new geography by organically leveraging its
existing infrastructure and looking for additional bolt-on
opportunities. The target company has a heavily weighted
respiratory product mix at over 85%, possessing a large selection
of respiratory and home medical equipment to meet the needs of
today's patients at home. The staff delivers on a high touch
service model, aligned with Protech’s existing model, and is
continually educating their patient base to ensure strong
compliance of equipment. Moreover, the target company has a stable
and diverse payor mix with no more than 50% coming from a
particular payor source. In addition, the target company would give
Protech the opportunity to add over 5,000 patients from its patient
base to Protech’s existing subscription-based resupply program and
Protech expects it would derive strong revenue synergies from this
initiative.
The acquisition is expected to increase
Protech’s annual revenues by approximately $7 million. Leveraging
existing infrastructure, Protech expects to achieve additional
revenue and EBITDA generated from organic growth, cross selling and
corporate synergies.
According to the LOI, Protech expects to close
the acquisition for cash at a reasonable multiple that would
immediately be accretive to EBITDA and net income. Closing of the
acquisition is subject to final due diligence, final negotiation
and execution of a definitive purchase agreement and all necessary
approvals. Closing is anticipated to be within the next 30
days.
“We are extremely excited to have executed an
LOI that would expand our geographical footprint further into the
Southern portion of the United States,” said Greg Crawford,
Chairman and CEO of Protech. “The acquisition would give us a
foundation to build from in the new State with over 10,000 active
patients, and a location near a major metropolitan hub, which we
would plan to grow both organically and inorganically over time.
Post-closing, we would plan to seize on a significant opportunity
by adding over 5,000 patients to our existing robust
subscription-based resupply model. This acquisition would be
immediately accretive to Protech’s EBITDA, overall profitability
and adds $7 million dollars to the top-line which would bring us to
over $130 million in run-rate revenue. We remain focused on
strategically layering on complimentary respiratory focused
businesses to our strong infrastructure where we can quickly deploy
our technology driven model to enhance sales, margins, and patient
count over time. At this time, our acquisition pipeline remains
robust and we expect 2021 to be a very busy year for Protech as we
scale our organization by further penetrating existing markets as
well as entering new markets.”
Chief Financial Officer, Hardik Mehta added, “We
are delighted to have executed on yet another LOI for a profitable
respiratory focused company, which would help us strategically
scale our business into a new State. Our focus continues to be on
profitable $5 to $20+ million-dollar top-line companies, and we
have a very deep pipeline of targets at various stages of
due-diligence. Post-closing, our balance sheet would remain in
exceptional condition and we will continue to be aggressive in our
acquisition plan. We look forward to a potential closing on this
exciting respiratory care company and will work diligently to
integrate the business onto the Protech platform.”
Additional information will be released by the
Company as it occurs. There can be no assurance that any
acquisitions (including the particular acquisition contemplated
herein) will be completed or the timing of any acquisitions.
ABOUT PROTECH HOME MEDICAL
CORP.
The Company provides in-home monitoring and
disease management services including end-to-end respiratory
solutions for patients in the United States healthcare market. It
seeks to continue to expand its offerings to include the management
of several chronic disease states focusing on patients with heart
or pulmonary disease, sleep disorders, reduced mobility and other
chronic health conditions. The primary business objective of the
Company is to create shareholder value by offering a broader range
of services to patients in need of in-home monitoring and chronic
disease management. The Company’s organic growth strategy is to
increase annual revenue per patient by offering multiple services
to the same patient, consolidating the patient’s services and
making life easier for the patient.
Forward-Looking Statements
Certain statements contained in this press
release constitute "forward-looking information" as such term is
defined in applicable Canadian securities legislation. The words
"may", "would", "could", "should", "potential", "will", "seek",
"intend", "plan", "anticipate", "believe", "estimate", "expect" and
similar expressions as they relate to the Company, including:
the Company closing the acquisition and the anticipated financial
impact (revenue, EBITDA, net income) of the acquisition on
Protech’s financial results; the acquisition resulting in cross
selling and corporate synergies; closing of the acquisition within
the next 30 days; the acquisition expected to increase Protech’s
annual revenues by approximately $7 million; Protech expecting to
close the acquisition for cash at a reasonable multiple that would
immediately be accretive to EBITDA and net income; Protech
expecting 2021 to be a very busy year for Protech through
penetrating existing markets and entering new markets; and the
Company closing additional acquisitions; are intended to identify
forward-looking information. All statements other than statements
of historical fact may be forward-looking information. Such
statements reflect the Company's current views and intentions
with respect to future events, and current information available
to the Company, and are subject to certain risks, uncertainties
and assumptions, including: receipt of all necessary approvals for
the acquisition; the Company successfully completing the
negotiation of a definitive purchase agreement and all closing
conditions being waived or satisfied in a timely manner; the
definitive purchase agreement being executed; and the Company
successfully identified, negotiating and completing additional
acquisitions, including accretive acquisitions. Many factors could
cause the actual results, performance or achievements that may be
expressed or implied by such forward-looking information to vary
from those described herein should one or more of these risks or
uncertainties materialize. Examples of such risk factors include,
without limitation: credit; market (including equity, commodity,
foreign exchange and interest rate); liquidity; operational
(including technology and infrastructure); reputational;
insurance; strategic; regulatory; legal; environmental; capital
adequacy; the general business and economic conditions in the
regions in which the Company operates; the ability of the Company
to execute on key priorities, including the successful completion
of acquisitions, business retention, and strategic plans and to
attract, develop and retain key executives; difficulty
integrating newly acquired businesses; the ability to implement
business strategies and pursue business opportunities; low profit
market segments; disruptions in or attacks (including
cyber-attacks) on the Company's information technology, internet,
network access or other voice or data communications systems or
services; the evolution of various types of fraud or other
criminal behavior to which the Company is exposed; the failure
of third parties to comply with their obligations to the Company
or its affiliates; the impact of new and changes to, or
application of, current laws and regulations; decline of
reimbursement rates; dependence on few payors; possible new drug
discoveries; a novel business model; dependence on key
suppliers; granting of permits and licenses in a highly regulated
business; the overall difficult litigation environment,
including in the U.S.; increased competition; changes in foreign
currency rates; increased funding costs and market volatility
due to market illiquidity and competition for funding; the
availability of funds and resources to pursue operations;
critical accounting estimates and changes to accounting standards,
policies, and methods used by the Company; the occurrence of
natural and unnatural catastrophic events and claims resulting
from such events; and risks related to COVID-19 including various
recommendations, orders and measures of governmental
authorities to try to limit the pandemic, including travel
restrictions, border closures, non-essential business closures,
quarantines, self-isolations, shelters-in-place and social
distancing, disruptions to markets, economic activity,
financing, supply chains and sales channels, and a deterioration
of general economic conditions including a possible national
or global recession; as well as those risk factors discussed or
referred to in the Company’s disclosure documents filed with
the securities regulatory authorities in certain provinces of
Canada and available at www.sedar.com. Should any factor affect
the Company in an unexpected manner, or should assumptions
underlying the forward-looking information prove incorrect, the
actual results or events may differ materially from the results
or events predicted. Any such forward-looking information is
expressly qualified in its entirety by this cautionary
statement. Moreover, the Company does not assume responsibility
for the accuracy or completeness of such forward-looking
information. The forward-looking information included in this
press release is made as of the date of this press release and
the Company undertakes no obligation to publicly update or revise
any forward-looking information, other than as required by
applicable law.
Unless otherwise specified, all dollar amounts
in this press release are expressed in Canadian dollars.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
For further information please visit our website
at www.protechhomemedical.com, or contact:
Cole StevensVP of Corporate Development Protech
Home Medical Corp.859-300-6455cole.stevens@myphm.com
Gregory CrawfordChief Executive OfficerProtech
Home Medical Corp.859-300-6455investorinfo@myphm.com
Protech Home Medical (TSXV:PTQ)
過去 株価チャート
から 12 2024 まで 1 2025
Protech Home Medical (TSXV:PTQ)
過去 株価チャート
から 1 2024 まで 1 2025
