NYC giant flexes its muscle with Long Island deal
MT. VERNON, N.Y. - Landauer Metropolitan, the largest independent provider in greater New York City, acquired an HME on Long Island in late July that will serve as a hub for expansion on the island. Landauer previously operated out of a single 75,000-square-foot location in Mt. Vernon.
The acquisition of All Island Medical comes as no great surprise. In December, CEO Alan Landauer sold a piece of his company for $7.63 million to Clairvest Group, a Canadian investment company. Landauer’s goal is to use the investment capital to grow his company to $100 million within five years.
To do that, Landauer figures that in addition to All Island Medical, he needs to acquire four more HMEs: one or two companies in New Jersey, one on Staten Island and one in Fairfield County, Conn.
“We have a bar graph and it shows the organic growth and acquisition growth (needed) to achieve $100 million in five years, and it is conceivable by staying in the metro area,” Landauer said.
By not straying beyond greater New York City, Landauer can maintain and build upon existing contracts with managed care organizations. He also doesn’t have to bill another DMERC.
The CEO declined to say how much his $40-million company paid for All Island Medical, which generates annual revenue between $2 million and $3 million. Forty-five percent of All Island’s revenue comes from home respiratory services, 30% from custom rehab and the rest from DME.
Currently, Landauer Metropolitan averages 85 same-day deliveries, 45 of those on Long Island. Landauer will now service Long Island from the All Island location. The company also recently signed two new sales people, Landauer said. HME