Buyer: Freeman Spogli Partners with US Med-Equip
Seller: Freeman Spogli Partners with US Med-Equip
Sector: Medical Equipment Rental, Asset Management
HOUSTON, Dec. 7, 2020 /PRNewswire/ — US Med-Equip (“USME”), a value-added distributor and rental provider of moveable medical equipment, announced it has partnered with Freeman Spogli & Co. (“Freeman Spogli”). USME’s founders, Gurmit Bhatia and Greg Salario, along with their management team will continue to lead the company as they embark on the next phase of growth. Specific terms of the transaction were not disclosed.
Houston-headquartered USME partners with hospitals across the United States in the rental, sale, service, and asset management of movable medical equipment including diagnostic and clinical devices ranging from infusion pumps and patient monitors to ventilators, newborn incubators, and more. Founded in 2003, USME is a rapidly growing distributor and provider of moveable medical equipment rentals with more than 40 locations across 23 states, serving over 1,600 hospital customers with more than 60,000 units in its equipment fleet.
“We are thrilled to partner with Freeman Spogli as USME enters this next chapter of growth for our company,” said Gurmit Bhatia, co-founder and CEO of USME. “Our new partnership will allow us to accelerate our ongoing national expansion and to support more healthcare providers throughout the U.S. Medical staff are facing record demands, and our commitment to support hospitals, from major medical centers to underserved rural hospitals, is stronger than ever with Freeman Spogli on our team.”
“The USME team has done a terrific job building the company into a leading provider and distributor of moveable medical equipment rentals,” said Chris Johnson, a Partner at Freeman Spogli. “With hospital admissions fluctuating heavily throughout the year and day-to-day operations significantly stressed by the ongoing viral outbreak, healthcare providers are increasingly turning to smarter and more efficient options from trusted partners like US Med-Equip to ensure they provide patients the best care possible. We are excited to provide USME with additional resources to continue their support of front-line workers and hospitals nationwide.”
Affiliates of private equity firm, Owner Resource Group (“ORG”), which supported USME through an investment in the company in 2017, will retain an ownership stake in the company as part of this transaction.
Freeman Spogli’s legal counsel was Morgan, Lewis & Bockius LLP. USME was advised by Lazard Middle Market LLC and its legal counsel was Queen Saenz + Schutz PLLC. Audax Private Debt and Adams Street Credit Advisors were co-leads for the debt to support the acquisition.
About US Med-Equip
Founded in 2003 and headquartered in Houston, Texas, US Med-Equip is a leading value-added distributor and rental and related services provider of mission-critical moveable medical equipment used in hospitals. The company provides equipment rentals across four product categories – respiratory, infusion, monitoring and central supply / NICU. For more information, please visit www.usme.com.
About Freeman Spogli
Freeman Spogli & Co. is a private equity firm dedicated exclusively to investing in and partnering with management in consumer and distribution companies in the United States. Since its founding in 1983, Freeman Spogli has invested over $5.0 billion in 65 portfolio companies with an aggregate transaction value of over $25 billion, and is currently making investments from FS Equity Partners VIII, L.P. Freeman Spogli has offices in Los Angeles and New York. For additional information, visit www.freemanspogli.com.
About Owner Resource Group
Owner Resource Group, based in Austin, Texas, is a private equity firm that partners directly with business owners and management teams of manufacturing, distribution and service companies across a variety of industries. Founded in 2008, ORG has completed over $1 billion of transactions since inception. ORG is currently making investments from ORG Opportunity Fund III, LP. For additional information, visit www.orgroup.com.
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