Sanomedics to buy sleep provider for $7M
MIAMI – Sanomedics International Holdings has entered into a definitive agreement to acquire its second sleep services business, Baytown, Texas-based Duke Medical, for $7 million. Duke Medical generated about $4 million in revenue and an EBITDA of $1.5 million in 2012, and is on target to hit an EBITDA of $2 million this year. Duke Medical provides medical products and supplies to patients with sleep apnea throughout Houston and Galveston. Vann Duke, who has held positions at Rotech Healthcare, Apria Healthcare and Lincare, leads the company. “This acquisition will take Sanomedics into new geographic markets and expand our efforts to build out a national platform of our sleep apnea service and product offerings,” stated Keith Houlihan, co-founder and president of Sanomedics, in a press release. The purchase price includes cash, the issuance of common shares of Sanomedics and debt consideration. The deal is expected to close by Sept. 30, 2013. In 2012, Sanomedics signed letters of intent to buy two unnamed sleep services businesses on the East and West coasts. Earlier this year, it also acquired Prime Time Medical, a Largo, Fla.-based HME provider, for $3 million.