SG Homecare, a provider of HME and supplies, has acquired Western Drug Medical Supply, creating a platform to scale in Southern California.
The combined entity has more than $150 million in annual revenue and more than 500 employees. “This is a transformative moment for both SG Homecare and Western Drug Medical Supply,” said Jay Wendt, CEO, SG Homecare. “We’re committed to a seamless integration, fostering a powerful platform for growth. By leveraging our combined size and resources, we will significantly expand our reach and ability to serve patients and partners across Southern California.” SG Homecare’s portfolio now includes DME, respiratory solutions, mobility assistance, orthotics and prosthetics, and essential home care supplies.
“We are thrilled to join forces with SG Homecare,” said Haig Youredjian, president and CEO, Western Drug. “Together, we establish an unparalleled network of care, offering a wider range of products and expertise to patients and healthcare professionals throughout California.”
Western Drug Medical Supply was acquired by SG Homecare in a 2024 deal that is forming a new, combined company called Stance Health Solutions. This acquisition unites two leading durable medical equipment (DME) providers in California and was supported by investment from Balance Point Capital.
Details of the acquisition
- Acquirer: SG Homecare, a portfolio company of private equity firm Sverica Capital.
- Acquired: Western Drug Medical Supply, founded in 1977 and based in Glendale, CA.
- Timeline: The acquisition was announced in April/May 2024.
- New Combined Entity: The two companies will operate as Stance Health Solutions, with the new brand rolling out in early 2025.
- Leadership: Jay Wendt, the former CEO of SG Homecare, is the CEO of Stance Health Solutions.
- Financials: The new combined company has over $150 million in annual revenue and more than 500 employees.
- Purpose: The merger is a strategic move to create a stronger platform for scaling home care services in Southern California and beyond.
- Financing: Balance Point Capital provided debt financing to support SG Homecare’s acquisition of Western Drug and other needs.
- Services: The combined company will offer a wider range of products and services, including durable medical equipment, respiratory solutions, and mobility assistance.
In 2024, the M&A market for healthcare companies continues to build on STRATEGIC opportunities in the current market. The strategic corporate buyers and private equity investors remain committed to acquiring strong businesses that are well prepared for a transaction. Across the continuum of care, these buyers and investors are looking for well established, profitable businesses and offering prime valuations and options for management.
Do you know the current market value of your business? We do! We are here to help you plan, prepare, explore and succeed in executing your strategic options.
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