Teijin loves New York

Sunday, October 19, 2008

GLEN FALLS, N.Y. - Teijin, a respiratory giant in Japan, bought Home Therapy Equipment earlier this month, its third U.S. provider this year.

In late May, the Tokyo-based Teijin bought Bakersfield, Calif.-based Braden Partners, which does business as Pacific Pulmonary Services. In January, it bought Associated Healthcare Systems in Amherst, N.Y.

"Those guys have been looking at HME in the U.S. for probably three years and they finally got mobilized," said Bob Leonard, an analyst with The Braff Group, a mergers-and-acquisition firm in Pittsburgh.

The 35-year-old Home Therapy is based in Glen Falls and has locations in Albany and Poughkeepsie. The provider offers durable medical equipment and respiratory services.

Home Therapy's business dovetailed nicely with Associated's, said Don White, Associated Healthcare CEO.

"They have a strong respiratory presence in Albany and it really tied down our market coverage for upstate New York," he said. "And we didn't go as far south as Poughkeepsie, so it gives us a nice reach."

The Home Therapy and Associated locations in Albany will be combined, White said.

Teijin is in the market for more deals.

"We are looking for strong respiratory companies in New York that may be looking for a home in the next year," he said.

Terms of the deal were not disclosed, but White said Home Therapy came with 3,000 new patients.

Home Therapy and Associated continue to operate under their own names. White will serve as CEO for both and Joseph Flacke will stay on at Home Therapy as vice president.