Buyer: Advanced Diabetes Supply
Seller: US Medical Supply
Sector: Medical Equipment, Medical Device, Medical Supply
Keywords: Advanced Diabetes Supply, US Medical Supply, H.I.G Capital, Court Square Capital Partners, Medical Supply, Continuous Glucose Monitors, CGM, Medical Equipment, Medical Device, Medical Supply
MIAMI (July 28, 2021)—H.I.G. Capital, a global alternative investment firm with $45 billion of equity capital under management, announced the sale of its portfolio company, US Medical Supply (US MED) to Advanced Diabetes Supply (ADS), a portfolio company of Court Square Capital Partners Inc. Terms of the transaction were not disclosed.
US MED is among the largest and fastest growing direct-to-consumer specialty distributors of continuous glucose monitors (CGM) and medical supplies in the nation. The company’s success is a result of its talented and dedicated team, competitively differentiated platform, unique patient recruitment strategies and industry-leading patient satisfaction.
H.I.G. acquired US MED in August 2015 and collaborated with management to craft a strategic vision of transforming US MED into a differentiated provider of medical supplies to patients with chronic conditions, with a focus on emerging diabetic technologies such as CGM. Management developed a unique multi-modal patient recruitment strategy, including sophisticated D2C marketing capabilities and an effective salesforce. The company meaningfully expanded its payer base, becoming a trusted partner of choice to managed care and government entities covering nearly 200 million lives. Additionally, US MED implemented a robust, institutionalized compliance program and invested meaningfully in technology and automation. US MED grew revenue and EBITDA nearly three-fold during H.I.G.’s ownership, generating an outstanding return to H.I.G. and management.
Mark Howard, co-founder and CEO at Advanced Diabetes Supply, commented, “We are proud to be bringing together two successful companies who share the mission of delivering outstanding patient care. Our combined scale, strengths, and capabilities will position us as a leader in our space and allow us to deliver even better levels of service. We founded Advanced Diabetes Supply with the goal of setting a new standard for patient care in the diabetes DME space, and US MED shares that same mission and passion. Together, ADS and US MED will benefit from having broader in-network payor coverage, bicoastal presence, more warehouse locations, complementary partner relationships, streamlined workflows and systems, and the ability to learn from each other’s strengths. We believe this will result in improved service capabilities and the fulfillment of our mission: delivering best-in-class patient care.”
Bill Monast, US MED’s CEO, said, “We appreciate H.I.G.’s strategic guidance and commitment to US MED. H.I.G. served as a value-added partner to our leadership team and supported the transformation of the business. We look forward to this next phase of growth as we work with ADS while continuing to serve as an integral partner to our patients, payors, and suppliers.”
Camilo E. Horvilleur, managing director at H.I.G. Capital, commented, “It has been a distinct pleasure working with Bill and his team to complete the strategic transformation of US MED. Management and the entire US MED team executed flawlessly and were outstanding partners from start to finish. US MED’s high-performance culture, commitment to patients, and growth-orientation were critical in achieving an extraordinary outcome.”
The M&A market for healthcare companies continues to strengthen in 2021 and ahead of the projected increases in US capital gains taxes. There is unprecedented capital in market, the lowest interest rates in US history and strong acquirer motivations for high quality healthcare companies. Across the continuum of care, buyers and investors are looking for well established, profitable businesses and offering strong valuations and options for management.
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