N.Y. indie gains 1,000 O2 patients
MOUNT VERNON, N.Y. - The largest provider of DME and respiratory services in the New York metropolitan area just got a lot bigger.
Landauer-Metropolitan, which generates an estimated $50 million in revenues annually, acquired Miller Medical & Respiratory in Philadelphia, Pa., in early January. The acquisition includes 1,000 respiratory patients.
Miller is one of the bigger, if not the biggest, respiratory players in the Philadelphia market and provides a nice platform for Landauer's expansion into the south New Jersey market.
"It's virgin territory for us," said Louis Rocco, Landauer CEO. "We feel we can take our New York know-how and expand it into New Jersey."
Home respiratory services represent about 75% of Miller's annual revenues. Landauer plans to grow Miller by introducing its own respiratory specialty--ventilators and pediatrics--into that market. Miller also will benefit from Landauer's managed care contracts, Rocco said.
Miller's management team will remain onboard--that was a requirement of the deal. As part of its acquisition strategy, Landauer insists on retaining key management who can continue to help grow the company through their local contacts.
That is not unusual among regional and local buyers, said Jonathan Sadock, CEO of Paragon Ventures, the M&A firm that represented Miller Medical.
"In the case of Landauer, they didn't have anyone in this market, and they need (management) to continue to grow and build this business," he said.
According to Rocco and Landauer CFO Joe Luceri, the company plans to make other acquisitions as it grows its presence in the tri-state area of New York, New Jersey and Connecticut.