AdaptHealth to buy AeroCare Holdings for $2 billion

(Reuters) - Medical equipment provider AdaptHealth Corp said on Tuesday it was buying privately held AeroCare Holdings Inc for $2 billion in cash and stock.

The deal follows the company’s $425 million acquisition of Solara, a direct-to-patient provider of diabetes management supplier, in May.

Florida-based AeroCare provides respiratory and other medical equipment for use at home.

Following the deal, AdaptHealth Chief Executive Officer Luke McGee and his counterpart at AeroCare, Steve Griggs, will jointly lead the company as co-CEOs.

AdaptHealth said it would pay $1.1 billion in cash and 31 million in its common shares.

The company also raised its revenue forecast for fiscal year 2021 to a range of $2.05 billion to $2.20 billion from a range of $1.30 billion to $1.40 billion.

Reporting by Manas Mishra and Mrinalika Roy in Bengaluru; Editing by Anil D’Silva