BlueMountain recaps durable-medical-equipment company AdaptHealth, formerly QMES

  • Deal equates to ~5.6 Ebitda multiple
  • Sell-side adviser: JPM
  • Competitor AeroCare remains up for sale

BlueMountain Capital Management has led an about $250 million recapitalization of AdaptHealth, which distributes oxygen-therapy products and other durable medical equipment, according to people familiar with the matter.

In connection with the recap, BlueMountain injected some $100 million into the Oaks, Pennsylvania, company, formerly QMES, the people said.

CIT Group led a $425 million senior credit facility to support the transaction, bringing its total enterprise value to $675 million. That represents a 5.6x multiple, based upon the company’s about $120 million in Ebitda pre-cash flow.

The deal concludes a JP Morgan Securities-run auction, as Buyouts initially reported in November.

Formed in 2012 through various acquisitions, AdaptHealth provides durable medical equipment and respiratory therapy products and services to patients in their homes through various affiliates: Ocean Medical, Montgomery Medical, Landauer/MedStar and Roberts Home Medical, among others.

AdaptHealth’s geographic presence spans New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia and West Virginia.

The company’s chairman and CEO is Luke McGee, a principal at Quadrant Management, the New York private investment and restructuring firm.

The transaction comes as an AdaptHealth peer, Peloton Equity-backed AeroCare, continues to undergo a sales process via Triple Tree.

In other recent DME activity, Lincare Holdings, a subsidiary of Germany’s Linde Group, purchased Beecken Petty O’Keefe’s Preferred Homecare. The deal concluded a Houlihan Lokey-run auction that also drew interest from sponsors.

Action Item: Check out BlueMountain’s Form ADV: