AdaptHealth to buy AeroCare in a deal valued at more than $2.0 billion, raises revenue outlook – MarketWatch

Home health care equipment company AdaptHealth Corp.
AHCO,
+0.37%

announced Tuesday an agreement to buy AeroCare Holdings Inc., a respiratory and home medical equipment distribution company, in a cash and stock deal valued at a little over $2.0 billion. The company also raised its fiscal 2021 revenue guidance range to $2.05 billion to $2.20 billion from $1.30 billion to $1.40 billion, which compares with the FactSet consensus of $1.37 billion. Under terms of the AeroCare deal, AdaptHealth will pay $1.1 billion in cash and 31 million AdaptHealth common stock, which based on Monday’s closing price of $29.86 would be valued at $925.7 million. The deal is expected to close in the first quarter of 2021. AdaptHealth’s stock, which is still inactive in premarket trading, has soared 172.0% year to date, while the S&P 500
SPX,
-0.46%

has gained 12.1%.