July 27, 2021
H.I.G. Capital Announces the Sale of US MED
H.I.G. Capital, a private equity firm, announced today that it has sold its portfolio company, US Medical Supply, to Advanced Diabetes Supply. US Medical Supply is a direct-to-consumer specialty distributor of Continuous Glucose Monitors (CGMs) and medical supplies. The terms
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MIAMI–(BUSINESS WIRE)–H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with $45 billion of equity capital under management, announced today the sale of its portfolio company, US Medical Supply (“US MED” or the “Company”), 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 payor 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.”
Houlihan Lokey served as financial advisor to US MED on the transaction.
About US MED
Founded in 1996, US MED has served over 1 million patients through the home delivery of CGM and other medical devices and supplies for chronic diseases, including diabetes, sleep apnea, and urinary incontinence. US MED is dedicated to better serving and improving the quality of life for these patients. US MED’s commitment to exceptional quality and patient satisfaction has generated strong brand equity among all healthcare stakeholders.
US MED home delivers products to all 50 states and is accredited by the ACHC, URAC, VIPPS, and is recognized by the American Diabetes Association. It contracts with over 500 insurance plans covering nearly 200 million lives, making it easy and convenient for most patients to access supplies.
US MED delivers best in class patient net promoter scores and is A+ rated by the Better Business Bureau. The Company delivers on the core customer promise of timely, accurate order delivery alongside convenient ordering options and an easy to reach, professional and knowledgeable call center staff. For more information, please visit www.usmed.com.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with $45 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:
- H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
- H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
- H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
About Advanced Diabetes Supply
Founded in 2002, Advanced Diabetes Supply is a leading national distributor of Durable Medical Equipment specializing in diabetes supplies. ADS holds the most valued accreditations in the diabetes supply industry, including NABP, URAC, and NABP.
Our focus on leading the industry with innovation, knowledge, and unparalleled commitment to exceeding service standards highlights Advanced Diabetes Supply’s dedication to customer outcomes. Please visit our website at www.northcoastmed.com.
About Court Square Capital Partners
Court Square is a middle market private equity firm with one of the most experienced investment teams in the industry. Since 1979, Court Square has completed over 235 platform investments, helping managers, families and founder-owners to develop their companies into leaders in their respective markets. Court Square invests in companies that have compelling growth potential in the business services, industrial, healthcare, and tech and telecom sectors. Court Square has $7.0 billion of assets under management and is based in New York, N.Y. For more information on Court Square, please visit www.courtsquare.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.
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Advanced Diabetes Supply (ADS) has acquired US Medical Supply (US MED) in a deal that will increase ADS’s visibility in the eastern United States and give it a large platform on which to grow. ADS and US MED are complementary businesses, with ADS focusing on insulin pumps and continuous glucose monitors and US MED having a strong digital marketing presence and a direct-to-consumer model. The acquisition is ADS’s first major deal since it was acquired by Court Square Capitol Partners in late 2020.