H.I.G. Capital, a global alternative investment firm with $45 billion of equity capital under management, sold its portfolio company, US Medical Supply (US MED), to Advanced Diabetes Supply (ADS), a portfolio company of Court Square Capital Partners. Terms of the transaction were not disclosed.
US MED is a direct-to-consumer specialty distributor of continuous glucose monitors (CGM) and medical supplies. H.I.G. Capital 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 technologies for diabetes treatment such as CGM. Management developed a multi-modal patient recruitment strategy, including D2C marketing capabilities. The company expanded its payor base, becoming a partner to managed care and government entities covering nearly 200 million lives. Additionally, US MED implemented a compliance program and invested in technology and automation. US MED grew revenue and EBITDA nearly three-fold during H.I.G. Capital ’s ownership.
“We are proud to be bringing together two successful companies who share the mission of delivering outstanding patient care,” Mark Howard, co-founder and CEO at Advanced Diabetes Supply, said. “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.”
“We appreciate H.I.G.’s strategic guidance and commitment to US MED,” Bill Monast, CEO of US MED, said. “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.”
“It has been a distinct pleasure working with Bill and his team to complete the strategic transformation of US MED,” Camilo E. Horvilleur, managing director at H.I.G. Capital, said. “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.”
Houlihan Lokey served as financial advisor to US MED on the transaction.
