BritKare makes first buy
AMARILLO, Texas – BritKare Home Medical took its first dip in the M&A pool in early May when it acquired Lubbock, Texas-based Pillar Equipment Services.
“This is our first (acquisition),” said Josh Britten, president of BritKare. “We’re retaining the location, the employees—the only thing that’s really changing is the name.”
Founded in 1995, the family-owned DME provider has locations in Amarillo and Pampa, Texas, and offers orthotics and pediatric supplies, as well as mobility, oxygen and respiratory equipment.
Besides adding a third location in a key geographic area with existing referral ties, BritKare also gained a new product line: ostomy.
“We do a little bit, but not nearly as much as they’re doing,” said Britten. “We’re learning from them and we’ll see if we can introduce that line in other areas.”
With the national roll out of competitive bidding looming in 2016 and insurance companies opting for smaller pools of preferred providers, Don Davis, president of Duckridge Advisors, says it’s becoming more difficult for smaller providers to keep their heads above water.
“Pillar is a relatively small provider,” said Davis, who represented Pillar in the deal. “I think they wanted to be ahead of the curve before everyone else decided to put their business on the market.”
Neither company is located in a competitive bidding area.
“I guess it’s coming to everyone in a couple months,” said Britten. “For the time being, it’s a pretty good deal.”