Roper Completes Acquisition of Managed Health Care

It's a bit incongruous, but industrial manufacturing specialist Roper  (NYSE: ROP  ) is now the proud owner of Managed Health Care Associates, a New Jersey-based supplier of services for alternate site health-care providers. The transaction was valued at approximately $1 billion, and was funded from Roper's available cash and borrowings under its credit facility.

MHCA negotiates discounted contracts with pharmaceutical manufacturers and medical equipment suppliers on behalf of nursing home operators, or assisted living facilities that operate outside of a traditional hospital setting.

When the deal was announced last month, Roper's Chairman, President and CEO Brian Jellison said:

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.

Roper expects the acquisition to be immediately cash accretive, and it's anticipated it will generate $95 million of EBITDA over the first year, excluding the impact of acquisition-related costs.

Roper is a diversified manufacturer that had almost $3 billion in revenues in 2012.


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 03, 2013, at 12:58 PM, D5460 wrote:

    It's only incongruous if you haven't done any research on Roper. Look at their portfolio of companies. They haven't been an "industrial manufacturing specialist" for years. The company is focused on high-tech, non-capital intensify, high cash generating companies in diversified fields including RF Technologies, SaaS-businesses and Healthcare, as well as some industrial companies that are able to leverage technology, customer intimacy and software solutions to drive value.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2405826, ~/Articles/ArticleHandler.aspx, 9/16/2014 1:04:27 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement