Industrial manufacturing specialist Roper has recently acquired Managed Health Care Associates. The latter is based out of New Jersey and is a service supplier for alternative site health care providers. The cost of the acquisition was projected to be near the US$1 billion, funded through the available cash and debt credit facility of Ropers.
What MHCA does is negotiate discounted contracts with drug companies and medical equipment suppliers for nursing home operators or assisted living facilities that operate outside the confines of a hospital environment.
According to Brian Jellison, Roper's Chairman, President and CEO, "MHA's powerful technology tools and proven customer-service model continue to drive growth in their multiple niches. The company has attractive cash return characteristics and generates substantial recurring revenue through long-term customer relationships and very high retention rates."
The acquisition is expected to generate revenue quickly and is expected to generate US$95 million of its EBITDA in the first year.
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