Private equity firms Clayton, Dubilier & Rice, and GS Capital Partners just closed their acquisition of HGI Holding, a Cleveland-based medical supplies distributor for an undisclosed amount of funding. Back in July, a source told the Wall Street Journal that the purchase price was $850 million.
HGI is a leading mail-order, direct-to-home provider of specialty medical products serving chronic disease patients. The company offers its customer base more than 30,000 products addressing a diverse set of rapidly growing chronic disease market segments including ostomy, diabetes, urological, enteral, incontinence and wound care. HGI’s product offering is one of the broadest and deepest in the specialty medical supply industry, often providing hard-to-find products that other home care suppliers do not carry. Paul Pressler of CD&R is HGI’s new chairman.
About Clayton, Dubilier & Rice, LLC
Founded in 1978, Clayton, Dubilier & Rice, LLC is a private equity firm with an investment strategy predicated on producing superior financial returns through building stronger, more profitable businesses. The firm’s professionals include a combination of financial and operating executives. Since inception, CD&R has managed the investment of more than $12 billion in 46 U.S. and European businesses representing a broad range of industries with an aggregate transaction value of approximately $70 billion. CD&R has a long history of investing in market-leading distribution businesses, including VWR International, a leading global distributor of laboratory supplies, U.S. Foodservice, the second largest broadline foodservice distributor in the United States, Rexel, the leading distributor worldwide of electrical supplies, and Diversey, a leading global manufacturer and distributor of commercial cleaning, sanitation and hygiene solutions. CD&R recently announced a definitive agreement to acquire a 42.5% ownership interest in Univar, a leading global distributor of commodity and specialty chemicals to a broad array of end markets. The firm has offices in New York and London. For more information, please visit www.cdr-inc.com.
About GS Capital Partners
Since 1986, the Goldman Sachs Merchant Banking Division and its predecessor business areas have raised 16 private equity and principal debt investment funds aggregating over $82 billion of capital (including leverage). GS Capital Partners VI is the current private equity vehicle through which Goldman Sachs conducts its large, privately negotiated, corporate equity investment activities. A global leader in private corporate equity investing, GS Capital Partners is a family of funds with a focus on investing in large, high quality companies with strong management and funding acquisitions or expansion across a range of industries and geographies. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. For more information, please visit www.gs.com/pia.
About HGI Holding, Inc.
Headquartered in Cleveland, Ohio, HGI Holding, Inc. (“HGI”) is a leading mail-order, direct-to-consumer provider of disposable medical products to chronic disease patients. The company operates through two segments, Edgepark Medical Supplies and Independence Medical. Edgepark contracts directly with over 600 managed care organizations (MCOs) to provide direct-to-consumer home delivery of products to approximately 300,000 patients, while also providing MCOs with value-added services that drive utilization, billing efficiencies and patient compliance. Independence serves as an outsourced supply chain for approximately 5,500 commercial customers, including durable medical equipment suppliers, independent pharmacies and wholesale distributors. For more information, please visit www.edgepark.com and www.indemed.com.Get your FREE trial or subscribe now to Buyouts to find new deal opportunities, super-charge your fundraising efforts and track top managers.