Two infusion companies cement merger
LIVINGSTON, N.J. - A merger with American Infusion allows Home Solutions to expand its presence in New Jersey, the companies announced in mid-May.
The move creates a new infusion company that will operate under the Home Solutions banner and will fold American's clinical and customer service employees into Home Solutions existing Livingston, N.J. facility.
American was formed by Chicago-based Flexpoint Partners in 2005 to acquire MidAtlantic Infusion. Flexpoint will continue as an investor in the new company, according to a release.
"We are committed to the home infusion industry and are looking forward to working with (the company) to grow Home Solutions," stated Flexpoint Principal Ethan Budin.
The deal highlights a growing trend in the booming infusion market, which has seen growth driven by investment from private equity groups seeking entry into the healthcare sector (See HME News, February 2007).
"There are about six private equity firms right now that are extremely active, competitively acquiring home infusion businesses at fair valuations," said Jonathan Sadock, a managing partner with Philadelphia-based Paragon Ventures. "Private equity firms, especially those that have already committed funding into this healthcare sector, are committed to the industry and have the ability to throw additional funding at these companies."
Besides New Jersey, Home Solutions serves patients in New York, Pennsylvania, Delaware and Connecticut.
Terms of the deal weren't disclosed.