In the third deal of the year for AdaptHealth Corp. (NASDAQ: AHCO), the company has announced it has acquired AeroCare Holdings, Inc. from private equity firm SkyKnight Capital. AeroCare is a home health distribution platform, providing service and equipment to patients with chronic respiratory conditions. Its network of over 260 locations across the U.S. provides service to more than 500,000 patients and partners with more than 45,000 physicians annually. The deal is valued at $2 billion, consisting of a $1.1 billion cash payment and 31 million shares of AdaptHealth common stock. SkyKnight Capital only just bought AeroCare Holdings in October 2019 for an undisclosed sum, according to search results in our Healthcare Deals Database.

AdaptHealth Corp. provides a full suite of medical products and solutions including sleep therapy equipment, respiratory equipment (including CPAP devices and services), mobility equipment and hospital beds.

The combined company will operate under the name AdaptHealth, and Luke McGee, CEO of AdaptHealth, and Steve Griggs, CEO of AeroCare, will jointly lead the company as Co-CEOs. The merger is expected to significantly enhance the scale and geographic reach of AdaptHealth, providing access to new customers and strengthening relationships with referral partners, patients, manufacturers, and managed healthcare plans.

AdaptHealth intends to fund the cash portion of the consideration and associated costs through incremental debt and has committed debt financing from Jefferies Finance LLC.

Earlier in the year in May, AdaptHealth Corp. purchased Solara Medical Supplies, LLC and ActivStyle, Inc. in two separate deals. Linden Capital Partners divested Solara Medical Supplies, an independent distributor of continuous glucose monitors (CGM) in the United States and Riverside Company sold ActivStyle, which maintains extensive relationships with leading manufacturers, allowing the company to leverage a strong supply chain to provide an array of products to patients.