Federated Healthcare Supply Holdings, Inc. announced that it has acquired Ecologically Sound Medical Services (f/k/a Eco Sound). The deal marks the fifth add-on acquisition for the FHS platform, joining Grogan’s (Lexington, KY), eMed Healthcare (Little Rock, AR), T-Plex (St. Louis, MO) and Cole Medical (Sykesville, MD). Tracy, California-based Eco Sound is a leading supplier of medical and surgical supplies and capital equipment to long term care facilities, physician offices, home care and other alternate site healthcare providers on the West Coast.
Don Huhn and Mark Hineser, founders of Eco Sound, said jointly: “Completing an acquisition during a pandemic is especially challenging, and yet Ecologically Sound Medical Services and Federated Healthcare Supply were able to successfully complete this transaction. Working in healthcare distribution for over 40 years we have seen many changes throughout the industry. We founded Eco Sound because we wanted to deliver more value to the markets we served. We are honored to partner with Federated and we continue to support their expansion to the West Coast.”
“We are very excited to welcome the Eco Sound team and Eco Sound customers to the Federated family and to grow our presence on the West Coast,” said Gregg Rivkind, Chief Executive Officer of FHS. “Federated and Eco Sound share a common vision for providing superior customer service and being a reliable source of supply. This is an important acquisition for Federated and is another step in executing our expansion strategy focused on organic growth and strategic M&A.”
Financial terms of the transaction are not being disclosed.
About Us
FHS is one of the largest independent healthcare distributors focusing primarily on the non-acute market in the U.S. We believe that independent distributors are stronger when we come together and work as one. The company offers products, capital equipment, services, and technology and supply chain solutions to the entire continuum of care with divisions and experienced professionals dedicated to: physician offices, clinics, ambulatory surgery centers, long term care facilities, rural hospitals, community health centers, occupational health, correctional healthcare, EMS, labs, government facilities, home care, hospice, schools and universities, and pharmacies. The company currently has warehouse and office locations in Boothwyn, PA, Lexington, KY, St. Louis, MO, and Tracy, CA and is looking at growth opportunities.
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.
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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