H2C Advises Advanced Home Care on the Sale of Medical Equipment, Home Health, and Home Infusion Segments

 

June 29, 2020 — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as the exclusive financial advisor to Advanced Home Care (“AHC”), a post-acute healthcare company owned by 13 not-for-profit healthcare systems in the Southeast, in the sale of its medical equipment business to AdaptHealth Corp. (“AdaptHealth”), a leading provider of home medical equipment and supplies, and its home health and specialty infusion segments to BrightSpring Health Services (“BrightSpring”), a private company backed by KKR.

 

AHC’s board and management team desired a partnership that would enable the company to provide its unique suite of home health, infusion, and HME/DME services with greater efficiency and achieve additional scale and market diversification without the inherent execution risk of a growth strategy. AHC engaged H2C to find a partner or buyer with a growth-oriented mindset and specialized operational and clinical expertise.

 

Through a broad auction, H2C organized an active and rigorous process, contacting more than 120 potential buyers. Based on the information received during the process, H2C recommended the sale of AHC’s individual business segments and its regional corporate headquarters to different buyers in order to optimize value for the member health system sponsors of AHC.

 

In February, AHC sold its home health and specialty infusion segments to BrightSpring and its home medical equipment business to AdaptHealth. Under the deal, BrightSpring acquired AHC’s locations in North Carolina, expanding BrightSpring’s presence in the state as well as its infusion pharmacy business. For AdaptHealth, the deal increases the company’s footprint in the Southeast, an important market for the company.

 

In a separate, simultaneous transaction, AHC also sold its regional headquarters building in High Point, N.C. to a Scottsdale, Arizona-based Real Estate Investment Trust. The property is leased to AdaptHealth with a portion subleased to BrightSpring.

 

“H2C’s work in helping AHC find strategic partners that complemented their current operations across all service lines within the Southeast will strengthen care for the communities we serve in North Carolina as well as across a broad range of southeastern states,” said Joel Mills, CEO, AHC. “We’re grateful to H2C for leading us to a solution that accelerates our company’s long-term strategic goals while mitigating significant standalone execution risks.”

 

H2C ran a highly efficient process across all three transactions. “We very much appreciated the trust placed in us by the board and management of AHC in the execution of a complex series of transactions involving two corporate buyers, a real estate investment trust, and the company’s 13 health system member owners, resulting in the successful realization of AHC”s overall strategy,” said William B. Hanlon III, Principal, H2C. Email Bill