Pacific Mercantile Bank provided a $10 million revolving line of credit to Great Elm and its subsidiaries to partially fund the acquisitions of Valley Healthcare Group (VHG) and Northwest Medical (NWM), creating a regional provider of sleep and respiratory-focused durable medical equipment and services serving approximately 70,000 patients annually.
Great Elm is a majority owned, indirect subsidiary of Great Elm Capital Group.
The combined companies, which will continue to operate under local brand names, are well positioned to grow organically and to consolidate the fragmented durable medical equipment industry. Both acquired businesses have reputations for providing quality patient care, education and customer service, internally observing patient compliance rates well in excess of national averages.
“Our acquisition of VHG and NWM aligns well with Great Elm’s broader value creation strategy,” remarked Adam M. Kleinman, Great Elm president and CEO.
“Working together with the Great Elm team, we were able to quickly put the financing in place that enabled them to meet the short timeline for completing these transactions,” said Rob Parks, senior vice president at Pacific Mercantile Bank.
