Home medical equipment (HME) transaction activity continues to heat up, with the latest multi-million-dollar deal announced on May 6.
Viemed Healthcare Inc. (Nasdaq: VMD) announced it has entered into a definitive agreement to buy Lehan’s Medical Equipment for a base purchase price of $26 million. The transaction is expected to close in the third quarter of 2025.
“Operating for nearly 80 years, Lehan has established a well-deserved reputation for its expertise in home medical equipment with a particular emphasis on women’s health and a deep commitment to community engagement,” Viemed CEO Casey Hoyt said in a statement. “Lehan gives us a strong platform to execute our growth strategy in a large and fast-growing market with very familiar products.”
The Lafayette, Louisiana-based Viemed is an in-home clinical care provider of post-acute respiratory health care equipment and services. The in-home care company – which, as of Dec. 31, 2024, employed over 400 licensed respiratory therapists – delivers services to patients in all 50 states.
On its end, the DeKalb, Illinois-based Lehan’s Medical Equipment has been in the HME market since 1946. The family-owned in-home care company’s offerings include breast pumps, in addition to mobility products, devices for sleep apnea and more.
Lehan currently has three full-service locations in North Illinois, along with three sleep-focused set-up locations in the West Chicagoland area, including one in Wisconsin, Viemed noted in its announcement.
“Owners Jim and Jon Lehan and the more than 90 employees of the organization will join Viemed upon the completion of the transaction,” Viemed’s announcement details.
In 2024, Lehan generated net revenues of approximately $25.7 million and adjusted EBITDA of about $7.4 million.
In comparison, Viemed’s total net revenues for the year ended Dec. 31, 2024 were $224.3 million. Resupply is a big part of Viemed’s revenue mix: Monthly rental revenue from ventilators represented about 56% and 59%, respectively, of the company’s revenue for 2024 and 2023.
Viemed will fund its purchase of Lehan’s Medical Equipment via a mix of cash on hand and borrowings from its existing credit facility, according to the company.
“The acquisition also diversifies our product mix into maternal health that we expect to extend to our existing payer relationships across the country,” Hoyt continued. “This is a highly motivated and experienced team that has created tremendous brand equity, and we are pleased to join forces with them.”
Viemed’s purchase of Lehan further suggests that HME dealmaking is picking up after several years of inaction.
At the start of 2025, Henry Schein Inc. (Nasdaq: HSIC) completed its transaction for substantially all assets of Acentus, a national medical supplier specializing in the delivery of continuous glucose monitors (CGMs) with an annual revenue of about $35 million.
In July 2024, Owens & Minor (NYSE: OMI) made a splash by purchasing Rotech Healthcare for $1.36 billion.
In a smaller-sized deal the same month, Strive Medical announced its acquisition of ProMed DME, a durable medical equipment (DME) provider specializing in CGM supplies.
Before those deals, in March 2024, PruittHealth Medical Supply bought Allied Health Resources, a supplier of respiratory and other medical equipment and support services.
And Viemed itself has been an active M&A player. In April 2024, Viemed secured a majority interest in East Alabama Health’s HomeMed Business.
COO Todd Zehnder teased Viemed’s M&A plans, in fact, during the company’s Q4 2024 earnings call, which took place on March 11. Viemed hosts its Q1 2025 earnings call on May 8.
“We have a pristine balance sheet with $55 million available on our credit facilities, a $30 million accordion if needed, $17.5 million of cash on hand at year-end and a working capital balance of $15.6 million,” Zehnder said in March. “We occupy a rare space in the broader health care services market, with no net debt and an organic revenue engine that is essentially self-funding. We have a significant amount of dry powder to continue our vent fleet upgrade and potentially become more proactive on M&A that can complement this growth.”
