AdaptHealth Corp. · NASDAQ:AHCO
AdaptHealth — Merger or Acquisition (May 2020)
21 slides from AdaptHealth's merger presentation, May 2020
Slide 1: Investor Presentation May 2020
Investor Presentation May 2020
Slide 2: Disclaimers and Other Important Information
Disclaimer Disclaimers and Other Important Information This presentation (this “Presentation”) is for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential investment in AdaptHealth Corp. (“AdaptHealth” or the “Compa
Slide 3: Transaction Summary
Transaction Summary AdaptHealth has agreed to acquire two highly strategic and complementary recurring revenue supply businesses that are expected to be significantly accretive to growth, earnings and cash flow Solara Medical Supplies, LLC (“Solara”) is the largest independent distributor of con
Slide 4: Transaction Summary (continued)
Transaction Summary (continued) Solara purchase price of $425 million $362.5 million in cash Purchase $62.5 million in common stock issued to current owners including Linden Capital Consideration Management ActivStyle purchase price of $62 million paid in cash Funded with a balanced mix of
Slide 5: Transactions Advance AdaptHealth's Strategic Vision
Transactions Advance AdaptHealth’s Strategic Vision Today Pro Forma Our Goal Leading Provider of Leading Provider of Leading Diversified HME and Supply Connected Health Provider of HME Solutions Solutions Best-in-class technology Leader in sleep and diabetes, Integrated, condition specific pla
Slide 6: Compelling Industrial Logic for Acquisitions
Compelling Industrial Logic for Acquisitions Adds high quality, market leading platform assets, with management talent to further scale these business units Leans into core competencies – resupply, technology advantages, payors and referral relationships, field sales Increases exposure to relevant,
Slide 7: Solara Overview
Solara Overview Market Leader in a High Growth Segment Leader in diabetes management and the largest independent direct-to-patient distributor of CGMs CGM adoption is ramping rapidly, and drives long term, Leader in diabetes management and the recurring resupply revenue largest independent direct-to
Slide 8: Diabetes Market Overview
Diabetes Market Overview Diabetes Overview U.S. Diabetes Device Market Diabetes is the most costly chronic disease in the US, with CGM technology has seen rapid adoption among diabetics medical costs and lost productivity reaching $327 billion due to innovative and easy to use new products and a
Slide 9: Comprehensive Diabetes Management Portfolio
Comprehensive Diabetes Management Portfolio Solara offers a comprehensive suite of options for the effective management of diabetes, including CGMs, pumps, and ancillary supplies from all manufacturers Category & Representative Products Description Top Manufacturers Small sensor placed under the s
Slide 10: One-Stop-Shop for All Constituents
One-Stop-Shop for All Constituents Solara covers the distribution market from all angles with a comprehensive approach to products, services, and sales strategy Refers patient to manufacturer or Services patient directly or refers to Referrals distributor distributor Can refer to Solara for DM
Slide 11: ActivStyle Overview
ActivStyle Overview Market Leader in an Attractive Niche Leader in DTC incontinence (~80% of revenue) and urological supplies, together a $3+ billion market Consumable products for chronically ill patients drives Leading direct-to-consumer (“DTC”) significant recurring revenue supplier of incontinen
Slide 12: Acquisitions Directly Aligned with Our Core Strengths
Acquisitions Directly Aligned with Our Core Strengths Technology Infrastructure Leverages current tech infrastructure (e.g. Brightree); enables relatively quick synergizing of complex acquisitions Fulfillment Logistics CGM is strong fit with our CPAP resupply capabilities and claims processing e
Slide 13: Estimated Long-Term Growth Rates
Estimated Long-Term Growth Rates Our solutions play an important role in managing these chronic diseases in home Healthcare and Lost AdaptHealth PF 2019 Net Estimated Long-Term Chronic Disease Productivity Costs Product Line Product Revenue less BD Growth Rates ($bn) (in $bn) (in $mm) CGM, Insulin D
Slide 14: High Value Solutions that Enhance Our Scale
High Value Solutions that Enhance Our Scale LTM Pro Forma Unique Patients Serviced Revenue ($ in millions) (in thousands) 1,800 1,710 1 ActivStyle Solara Adapt ActivStyle Solara Adapt $1,200 1,600 $1,088 1,400 $1,000 1,181 1,200 1,137 1,039 $800 1,010 1,000 895 850 795 800 $600 $529 600 501 480 $400
Slide 15: Pro Forma Adapt is Significantly Diversified
Pro Forma Adapt is Significantly Diversified Adapt1 PF Adapt2 Diabetes 2% Respiratory 3 Respiratory 16% Diabetes 13% 19% Diversifies Product Other Supply Sleep Sleep Offerings With Scale 24% 44% Other 34% Diabetes Business Supply 4 24% HME 14% HME 11% One-off Sale One-off Sale 16% 14% Business Renta
Slide 16: Positioned to Lead the Shift to Connected Healthcare
Positioned to Lead the Shift to Connected Healthcare Patients Payors and Providers + Simplify Health + Monitor Treatment Management Plan Effectiveness + Encourage + Drive Early Compliance Interventions + Drive Better + Reduce Engagement Hospitalizations + Improve Outcomes + Improve Outcomes Connecte
Slide 17: Case Study: Diabetic Patient on CGM and Sleep Therapy
Case Study: Diabetic Patient on CGM and Sleep Therapy Illustrative Diabetic Patient Needs AdaptHealth Platform Allows the Company to monitor: CPAP Real-time insulin levels Real-time information on sleep quality Pump CGM Weight fluctuation Patient data can be compared to a baseline and used
Slide 18: Appendix
Appendix
Slide 19: Transaction Details
Transaction Details Sources and Uses of Funds Pro Forma FDSO Calculation (in $mm) (in mm) Incremental TLA $240 Standalone FDSO1 77.8 One Equity Investment $190 One Equity Partners Shares 13.8 Sources Deerfield Investment $35 Incremental Deerfield Shares 2.5 Solara Shareholder Equity $63 Solara Share
Slide 20: Equity Investment Terms
Equity Investment Terms One Equity Partners Deerfield Mgmt. Solara Shareholders Total Investment Amount $190.0 million $35.0 million $62.5 million $287.5 million Common Stock and Non-Voting Form of Equity Common Stock Non-Voting Stock Stock Price Per Share $13.75 $13.75 $16.00 $14.184 Premium / (Dis
Slide 21: Thank You
Thank You + +