LAKE FOREST, Calif.--Apria Healthcare has closed another high-profile deal with the purchase of Maumee, Ohio-based Young Medical and its sister company Toledo I.V. Care.
Young Medical President Tim Pontius--who ended his tenure as AAHomecare chairman last week at the association's Washington Leadership Conference--will stay on with the company, as will 80 of his employees. Fourteen workers in the accounting department will be retained personally by Pontius for the time being, then given assistance to find other jobs over the next four to six months.
The purchase, which closed June 3, is the latest in a string of deals Apria has put together this year. The respiratory giant closed seven transactions worth $28.1 million during the first quarter alone, including the January acquisition of former AAH Chairman Steve Knoll's Knoll Medical Supply, Topeka, Kan. Last fall, the company bought Raymond, N.H.-based LifePlus, one of the country's best-known independents.
"We're very busy at the moment," said Apria CFO Amin Khalifa, who added that the firm's own possible sale (see lead story) will not put a damper on its acquisition strategy.
Young Medical launched in 1974, providing respiratory equipment in northwest Ohio and southeast Michigan. In the 1980s, the company expanded its offerings and now provides rehab, orthopedics, HME and home IV, and recently constructed a new facility in Maumee.
Pontius began working part-time for the company in 1978 while going to school in respiratory therapy. He became part owner in 1984, then bought his partner out six years ago.
"I hope this isn't viewed as my giving up on this industry, because that's not what it's about," said Pontius, adding that he plans to remain active in the company and in the industry. He explained that "for the last-year-and-a-half, I felt the company had been at almost a market saturation point.
"I did an acquisition three years ago, and I was just getting all that debt down to a manageable level. My next best option would have been to go out and do another acquisition, but quite frankly, I'd have to move into another marketplace and go into more debt again . . . and I just didn't think it was the right thing for us to do."
According to Pontius, Apria will close its existing store in the market, "and we're going to market Young Medical and Toledo I.V. I'm going to remain as president and all our key managers are going to remain, and we're going to continue to run the companies."
