Viemed Executes Diversification Strategy With $26 Million Acquisition of Home Equipment Provider in Illinois
- Strategic expansion into women's health market through Lehan's established expertise
- Acquisition target generated strong financials: $25.7M revenue and $7.4M Adjusted EBITDA in 2024
- Geographic expansion into Illinois market with 6 locations
- Retention of experienced management team and 90+ employees
- Opportunity to leverage existing payer relationships for new product offerings
- Potential debt increase due to partial funding through credit facilities
- Integration risks with combining two long-standing operations
- $2.2M in additional contingent payments may affect final acquisition cost
Insights
Viemed's $26M acquisition of Lehan expands geographic reach and diversifies into women's health with favorable financial metrics.
This $26 million acquisition represents a clear execution of Viemed's diversification strategy, expanding both geographically and into new product categories. Looking at the financial metrics, Lehan generated
The acquisition provides Viemed with three full-service locations in Northern Illinois and three sleep/CPAP setup locations in the West Chicagoland area (including one in Wisconsin). This represents a significant geographic expansion for Viemed into a new regional market. The retention of the current ownership team (Jim and Jon Lehan) along with the 90+ employees suggests a focus on maintaining business continuity and preserving the institutional knowledge that has built Lehan's reputation over its nearly 80-year history.
The financing approach - using a combination of cash on hand and existing credit facilities - indicates Viemed has maintained financial flexibility to execute on strategic acquisitions. This approach to capital allocation preserves balance sheet optionality for future opportunities while deploying capital toward growth initiatives.
Acquisition gives Viemed immediate entry into women's health segment with established brand and complementary respiratory care business.
This transaction highlights Viemed's strategic entry into the women's health market, with a particular focus on maternal health products like breast pumps. The press release explicitly mentions Viemed's intent to extend these products to their existing payer relationships across the country, suggesting a national rollout strategy rather than just a regional play. By acquiring an established brand with 80 years of history, Viemed gains immediate credibility in this specialty segment.
The acquisition provides natural product synergies, as Lehan already offers respiratory care products including CPAP devices and resupply services, which align with Viemed's core business in post-acute respiratory healthcare. This overlap creates operational familiarity that should facilitate integration while the expansion into women's health diversifies Viemed's revenue streams.
The six total locations (three full-service and three sleep/CPAP setup) provide Viemed with an established infrastructure in a new geographic market. The press release describes the maternal health market as "large and fast-growing," suggesting this acquisition positions Viemed in a high-growth segment. With Lehan's demonstrated profitability (
LAFAYETTE, La., May 06, 2025 (GLOBE NEWSWIRE) -- Viemed Healthcare, Inc. (the “Company” or “Viemed”) (NASDAQ: VMD), an in-home clinical care provider of post-acute respiratory healthcare equipment and services in the United States, announced that it has entered into a definitive agreement to acquire Illinois-based Lehan’s Medical Equipment (“Lehan”), a healthcare company offering home medical equipment with specialties in respiratory care and women’s health.
“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,” said Viemed Chief Executive Officer Casey Hoyt. “Lehan gives us a strong platform to execute our growth strategy in a large and fast-growing market with very familiar products. The acquisition also diversifies our product mix into maternal health that we expect to extend to our existing payer relationships across the country. This is a highly motivated and experienced team that has created tremendous brand equity, and we are pleased to join forces with them.”
Founded in 1946 and headquartered in DeKalb, Illinois, Lehan’s Medical Equipment is a family-owned healthcare provider offering home medical equipment and products for women’s health, including breast pumps. The organization specializes in promoting wellness through a variety of healthcare services. Lehan also provides rental, sales, and resupply of CPAPs and other respiratory devices, as well as sales of other medical equipment. Lehan currently has three full-service locations in the Northern Illinois area and three sleep/CPAP set up locations in the West Chicagoland area, including one in Wisconsin. Owners Jim and Jon Lehan and the more than 90 employees of the organization will join Viemed upon the completion of the transaction.
In 2024, Lehan generated net revenues of approximately
ABOUT VIEMED HEALTHCARE, INC.
Viemed is an in-home clinical care provider of post-acute respiratory healthcare equipment and services in the United States, including non-invasive ventilators (NIV), sleep therapy, staffing, and other complementary products and services. Viemed focuses on efficient and effective in-home treatment with clinical practitioners providing therapy, education and counseling to patients in their homes using high-touch and high-tech services. Visit our website at www.viemed.com.
For further information, please contact:
Investor Relations
ir@viemed.com
Tripp Sullivan
SCR Partners, LLC
615-942-7077
Trae Fitzgerald
Chief Financial Officer
Viemed Healthcare, Inc.
337-504-3802
Forward-Looking Statements
Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or “forward-looking information” as such term is defined in applicable Canadian securities legislation (collectively, “forward-looking statements”). Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “potential”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, “projects”, or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “will”, “should”, “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. All statements other than statements of historical fact, including those that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance, including the Company’s expectations about its pending acquisition of Lehan’s Medical Equipment, such as expected purchase price, contingent payments, closing date, funding sources, and other benefits, are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking statements to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include, without limitation: the general business, market and economic conditions in the regions in which the we operate; significant capital requirements and operating risks that we may be subject to; our ability to implement business strategies and pursue business opportunities; volatility in the market price of our common shares; the state of the capital markets; the availability of funds and resources to pursue operations; inflation; reductions in reimbursement rates and audits of reimbursement claims by various governmental and private payor entities; dependence on few payors; possible new drug discoveries; dependence on key suppliers; granting of permits and licenses in a highly regulated business; competition; disruptions in or attacks (including cyber-attacks) on our information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which we are exposed; difficulty integrating newly acquired businesses; the impact of new and changes to, or application of, current laws and regulations; the overall difficult litigation and regulatory environment; increased competition; increased funding costs and market volatility due to market illiquidity and competition for funding; critical accounting estimates and changes to accounting standards, policies, and methods used by us; and the occurrence of natural and unnatural catastrophic events or health epidemics or concerns, and claims resulting from such events or concerns, as well as other general economic, market and business conditions; and other factors beyond our control; as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with the U.S. Securities and Exchange Commission (the “SEC”) available on the SEC’s website at www.sec.gov, including the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and with the securities regulatory authorities in certain provinces of Canada available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking statements are expressly qualified in their entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking statements. The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.
Non-GAAP Financial Measures
This press release refers to “Adjusted EBITDA” which is a non-GAAP financial measure that does not have a standardized meaning prescribed by U.S. GAAP. The Company's presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, and other adjustments, including adjustments relating to the proposed acquisition of Lehan. Company management believes Adjusted EBITDA provides helpful information to analyze Lehan’s operating performance, including a view of Lehan’s business that is not dependent on the impact of Lehan’s capitalization structure and the exclusion of items that are not part of Lehan’s recurring operations, including the impacts of the Company’s proposed acquisition of Lehan. Accordingly, Company management believes that Adjusted EBITDA provides useful information in understanding and evaluating Lehan’s historical operating performance in the same manner as it analyzes the Company’s operating performance.
FAQ
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