Landauer enjoys buyer's market

Sunday, March 4, 2007

MOUNT VERNON, N.Y. - Landauer-Metropolitan struck again last week, acquiring its second company in as many months. This time the giant independent picked up Home Care Services, an $8.5 million New Jersey provider that generates half its revenue from home infusion services.

"It's a good time to be a buyer because the pendulum has swung around the other way," said Landauer CFO Joe Luceri. "We have the opportunity to acquire some good companies at decent values--companies that wouldn't talk to us two years ago because they were going after the big boys."

Like the home real estate market, HME acquisitions have dwindled precipitously over the past two years, turning a seller's market into a buyer's market.

In January, Landauer, which generates annual revenues of about $50 million, completed a deal for Miller Medical & Respiratory in Philadelphia, Pa. That acquisition included 1,000 oxygen patients and gave Landauer a platform to expand into southern New Jersey.

By adding the Home Care Services location in central New Jersey (Metuchen), Landauer can now service that entire state. Home infusion is also a new line for Landauer and one that excites Luceri and CEO Lou Rocco.

"We have a sales force of 22 people from New York to Philadelphia and this is a good opportunity to leverage them," Luceri said. "We can offer a one-stop shop to a lot of referrals, and we think this will be a tremendous growth opportunity for us."

The Home Care Services deal fits with Landauer's goal to grow its presence in the tri-state area of New York, New Jersey and Connecticut. The company continues to be on the lookout to acquire providers it can tuck into its existing business or that will help it expand north into Connecticut, Rocco said.