Sumitomo Corporation Acquires Full Ownership of U.S.-based ActivStyle, Provider of Home Medical Supplies for Patients with Chronic Conditions

Rhea-AI Summary

Sumitomo Corporation (SSUMY) has acquired ActivStyle, a U.S. provider of home medical supplies, in May 2025. This follows their increased stake in Vast Medical Holdings, parent company of Quest, in April 2025. ActivStyle serves over 50,000 patients nationwide with incontinence care products and services.

The acquisition strengthens Sumitomo's presence in the U.S. healthcare market, targeting a growing sector where incontinence affects over 25 million Americans with 2-5% annual growth. The company plans ambitious investments of $360 million by 2027 and $700 million by 2030, targeting $70 million in profits by 2030.

Sumitomo aims to leverage synergies between ActivStyle and Quest through cross-selling opportunities, while applying knowledge gained to existing operations in Japan and Southeast Asia.

Positive

• Acquisition expands market reach with ActivStyle's network of 50,000+ patients
• Targets growing market with incontinence affecting 25M Americans and 2-5% annual growth
• Clear investment roadmap with $700M total investment and $70M profit target by 2030
• Potential revenue synergies through cross-selling between ActivStyle and Quest
• Insurance coverage model ensures stable revenue stream

Negative

• Significant capital commitment required ($700M by 2030)
• Integration challenges between multiple acquired companies
• Competitive pressure in the growing healthcare market
• Dependence on insurance reimbursement policies

Second investment in the U.S. healthcare market – expanding business foundations and pursuing synergy with Quest

ST. PAUL, Minn., May 7, 2025 /PRNewswire/ -- Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno) has, through its Group company, Sumitomo Corporation of Americas (collectively "Sumitomo Corporation Group"), acquired ActivStyle, LLC (hereinafter "ActivStyle"), a U.S. provider of home medical supplies for patients with chronic conditions, in May 2025. Prior to this, in April 2025, Sumitomo Corporation increased its stake in Vast Medical Holdings, the parent company of Quest, a provider of home medical equipment, supplies and services for people with diabetes. Moving forward, Sumitomo Corporation Group will pursue business synergy through cross-selling of products and services between ActivStyle and Quest.

Chronic conditions, including diabetes, have become a growing social issue in the United States. Incontinence, a chronic condition requiring long-term care, affects more than 25 million people in the U.S. – approximately 8 percent of the population – and this number is increasing by 2–5 percent annually. As incontinence is a common complication of diabetes, patient numbers are expected to rise in line with an aging population and increasing chronic disease rates.

ActivStyle serves as a key intermediary connecting patients, healthcare providers, medical supply manufacturers and insurance companies. The company collaborates closely with insurers and healthcare institutions to provide patients with incontinence care products such as adult diapers and undergarments, which are covered by insurance. Since its founding in 1997, ActivStyle has expanded its network with insurers and healthcare providers, becoming a leading player in the U.S. market with services reaching over 50,000 patients nationwide.

Sumitomo Corporation Group entered the U.S. healthcare market in April 2024 by investing in Vast Medical Holdings, leveraging expertise gained from its home pharmaceutical services business in Japan and its managed care operations in Southeast Asia, which include data analysis on medical costs associated with chronic illnesses such as diabetes. Based on its strong performance following this initial investment, Sumitomo Corporation increased its stake in Vast Medical Holdings in April 2025 to support further growth.

The acquisition of ActivStyle enables the Sumitomo Corporation Group to expand its business foundation in terms of insurance coverage, product offerings and patient base. By leveraging synergies with Quest, Sumitomo Corporation Group aims to improve patients' quality of life while contributing to medical cost optimization. The knowledge gained through U.S. operations will be applied to existing businesses in Japan and Southeast Asia with the goal of maximizing regional synergy. Looking ahead, the Sumitomo Corporation Group plans to pursue further investments, targeting a total investment of 360 million dollars in the U.S. healthcare market by 2027, total investment of 700 million dollars and profit of 70 million dollars in the U.S. healthcare market by 2030.

"Gaining Sumitomo Corporation Group as a parent company allows ActivStyle to expand its business model in the US as well as into new markets, supporting home health and long-term care globally," Darrell Rawlings, CEO at ActivStyle."

"ActivStyle is a great addition to our healthcare family, and we look forward to leveraging the synergies between our group companies in this space," said Jeremy Yap, General Manager at Sumitomo Corporation of Americas. "With the rising aging population and increasing rates of chronic illness, we see significant opportunity to grow these businesses and support those affected with the important care resources they need."

"Through our healthcare businesses in Japan and Southeast Asia, we have developed extensive expertise in home pharmaceutical services, network with health insurers, healthcare providers, and companies gained from managed care business, and primary care services through clinic chain operations. By integrating our knowledge and capabilities with ActivStyle's strong business foundation and network, we will expand home care services for diabetic patients in the United States and address the social challenge of optimizing healthcare costs," said Hiroshi Hasegawa, General Manager, Healthcare Strategic Business Unit at Sumitomo Corporation.

Overview of ActivStyle, Inc.
Company Name:	ActivStyle, LLC
Established:	1997
CEO:	Darrell Rawlings
Headquarters:	St. Paul, Minnesota, U.S.A.
Business Overview:	Provider of incontinence care products, such as adult diapers and undergarments, for patients with chronic conditions
Website:	Insurance-Covered Home Medical Supplies

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SOURCE Sumitomo Corporation of Americas

FAQ

What is the significance of SSUMY's acquisition of ActivStyle in 2025?

The acquisition expands Sumitomo's U.S. healthcare presence, adding ActivStyle's 50,000+ patient network and strengthening their position in the home medical supplies market, particularly in incontinence care products.

How much does Sumitomo Corporation (SSUMY) plan to invest in the U.S. healthcare market?

Sumitomo plans to invest $360 million by 2027 and $700 million by 2030, targeting $70 million in profits by 2030 in the U.S. healthcare market.

What synergies are expected between ActivStyle and Quest under SSUMY ownership?

The companies plan to pursue business synergies through cross-selling of products and services, leveraging their combined networks of healthcare providers, insurers, and patients.

What is the market size for incontinence care that SSUMY's ActivStyle targets?

The U.S. incontinence market affects over 25 million people (8% of population) and is growing 2-5% annually, driven by aging population and increasing chronic disease rates.

How will SSUMY's acquisition of ActivStyle impact their global healthcare strategy?

The acquisition will allow Sumitomo to apply knowledge gained from U.S. operations to existing businesses in Japan and Southeast Asia, maximizing regional synergy and expanding their global healthcare presence.