Great Elm DME expands in Midwest

Friday, June 14, 2019

WALTHAM, Mass. – Focus Respiratory, a wholly owned subsidiary of Great Elm DME, has acquired the respiratory assets of Omaha, Neb.-based Midwest Respiratory Care in an all-cash transaction valued at about $6.25 million.

The price tag is 4.6x MRC’s EBITDA, less capital expenditures for the 12 months ended April 30, 2019.

“We believe there is a significant opportunity to make additional acquisitions in existing and adjacent geographies,” said Peter A. Reed, CEO of Great Elm Capital, parent company of Great Elm DME. “With the acquisition of Midwest Respiratory, we have now scaled our platform in the Midwest to complement our existing platforms in Arizona and the Pacific Northwest. The acquisition also meaningfully diversifies our service offering and payer base in this region, as well as supplements our company-wide organic growth.”

Great Elm Capital partnered with Mesa, Ariz.-based Valley Healthcare Group to acquire Portland, Ore.-based Northwest Medical, combining the two companies, last year.

The MRC acquisition expands Great Elm’s geographic reach in the Midwest beyond its existing presence in Omaha, adding locations in Lincoln, Neb., Fort Madison, Iowa, and Lenexa, Kan. It also presents potential cost synergies, including combining corporate offices in Omaha, implementing best practices in billing and collection, and purchasing rental equipment.

MRC will focus its business on providing DME to hospice customers.