Roper Industries was originally founded by George D. Roper to manufacture home appliances, industrial products and pumps.
When president and CEO Brian Jellison took over, the company started a major acquisitions drive. Thanks to the strategy, the company now earns average revenue of $2.8 billion per year.
Now, Roper, based in Sarasota, Fla., is a company that defies categorization. The company provides "engineered products and solutions" for any and every industry including oil and gas, scientific research, medical diagnostics, semiconductor, refrigeration, automotive, water and wastewater, power generation and agricultural irrigation.
To bolster its medical portfolio, the company has announced that it will acquire New Jersey-based Managed Health Care Associates, Inc. (MHA), for $1 billion. The transaction is scheduled to be complete within the next 30 days.
MHA provides a number of services for healthcare providers outside of the clinical setting. The company negotiates contracts with pharmaceutical providers and medical equipment suppliers for non-clinical healthcare facilities like assisted living centers and nursing homes.
Specifically, MHA delivers expertise related to group purchasing, managed care and payer contracting, specialty pharmacy solutions, consultant pharmacy software, reimbursement management, pharmaceutical data analytics and legislative advocacy.
According to Brian Jellison, Roper's president and CEO, the acquisition should generate $95 million in earnings during the first year of ownership. "MHA has a compelling business model and we have been impressed by the management team's passion and commitment," Jellison stated. "The business will continue to operate as MHA, marketing technologies and services under current brand names."
Roper plans to tuck MHA into its medical niche along with Sunquest Information Systems, Inc., a company it acquired last summer. Sunquest provides clinical and anatomic laboratory software solutions.
Reuters reported that Roper will purchase MHA from private equity firm Diamond Castle Holdings, LLC.
According to Bloomberg, Roper shares have delivered an almost 25 percent return on investment (ROI) over the past year. The company has a market value of about $12 billion. SmarTrend recently reported that Roper had one of the Electrical Components & Equipment industry's highest operating margins at 24.5 percent.
Edited by
Braden Becker
