Seven Hills recaps Reliable Medical Supply


Seven Hills Capital has recapitalized Minnesota-based Reliable Medical Supply, a provider of complex rehab technology, clinical respiratory products and durable medical equipment and supplies. No financial terms were disclosed. Wintrust provided senior debt financing to back the transaction while Northcreek Mezzanine and Harbert Credit Solutions provided mezzanine debt along with an equity co-investment. McGuireWoods LLP provided legal counsel to Seven Hills.

PRESS RELEASE

November 2018 – Seven Hills Capital, LLC (“Seven Hills”) is pleased to announce the recapitalization of Reliable Medical Supply (“RMS”), a provider complex rehab technology (“CRT”), clinical respiratory products, and durable medical equipment (“DME”) and supplies across Minnesota. RMS serves a fragile patient base of pediatric and adult patients with conditions such as ALS, multiple sclerosis, cerebral palsy, severe spinal cord injuries, and stage four COPD, among others. Seven Hills partnered with ORIX Mezzanine and Private Equity to provide equity financing for the transaction.

Reliable Medical Supply (“RMS”) was founded in 1989 and has become a leading provider of CRT solutions across Minnesota and Western Wisconsin. Seven Hills is proud to partner with RMS’s management team led by Deborah Kalk to continue to expand RMS’s leading clinical reputation and service footprint across the Midwest.

“Seven Hills will serve as a key partner in our continued growth. Their hands-on experience building strong regional healthcare service companies and knowledge of the unique challenges and opportunities that exist in the multi-faceted healthcare landscape will enable us to expand our geographic reach, service offerings, and capabilities,” stated Debra Kalk, CEO of RMS. “Seven Hills’s proven approach to value creation through its operator centric partnership with existing management was a key factor in our decision to enter this relationship,” added Katee Dirksen, Vice President of Operations. Kalk, Dirksen, and Neal Frisch, CFO, will continue to lead RMS as the Company enters its next phase of growth.

“We could not be more excited to partner with Debbie, Katee, Neal, and the dedicated management team at RMS. RMS was built on a passion for providing best-in-class clinical care. We are excited to help the Company expand their patient first approach to a larger population,” said Matthew Pettit, Partner at Seven Hills. “We are confident the industry trends will continue to support expansion, thereby enhancing patient access and creating additional opportunities for our team members.”

Marshall Viney, Director at ORIX Mezzanine and Private Equity, added, “We are excited to partner with Seven Hills and the RMS management team to improve the lives of people with disabilities by providing patients with products that enable them to enjoy their daily lives.”

Wintrust provided senior debt financing in support of the transaction, while Northcreek Mezzanine and Harbert Credit Solutions provided mezzanine debt along with an equity co-investment. McGuireWoods LLP provided legal counsel to Seven Hills.

About Reliable Medical Supply

Headquartered outside of Minneapolis RMS is a leading provider of complex rehab technology, clinical respiratory products, and durable medical equipment and supplies across Minnesota and parts of Western Wisconsin. RMS serves a fragile patient base of pediatric and adult patients with conditions such as ALS, multiple sclerosis, cerebral palsy, a severe spinal cord injury, and stage four COPD, among others. For more information, please visit www.reliamed.com.

About Seven Hills Capital

Seven Hills Capital is an operator centric private equity platform, focused exclusively on opportunities within healthcare services. Founded by former operators, Seven Hills believes in building long-term businesses through collaboration with all stakeholders. Seven Hills has identified an opportunity to invest in smaller healthcare service opportunities often overlooked by larger sponsors. For more information, please visit www.7hillscap.com.

If you have any questions regarding this transaction, please contact Matthew Pettit (matt@7hillscap.com).

About ORIX Mezzanine and Private Equity

OMPE provides equity and junior debt financing options for lower and middle-market companies throughout North America and invests in a wide variety of industries and transaction types including buyouts and acquisitions, growth financings, recapitalizations, and special situations. Investments are predominately with independent sponsors and also include investments with funded equity sponsors, family offices, and directly with entrepreneurs and management teams. For more information, please visit www.orixmpe.com.