Direct Healthcare Group, which is backed by ArchiMed, has acquired United Care BV, a Dutch provider of patient handling solutions. No financial terms were disclosed.
ArchiMed’s Direct Healthcare Group buys United Care BV, with more buy-and-build acquisitions in the pipeline
The United Care deal is Direct Health Care Group’s sixth add-on in twelve months; combined with another recently closed deal, it increases revenues by some €30 million.
UK-based Direct Healthcare Group (DHG), one of three key investments of ArchiMed’s MED Platform I – Europe’s largest healthcare fund – has bought United Care BV (UC). The acquisition of UC, sourced and financed by private equity healthcare specialist, ArchiMed, follows the purchase of Talley Group just three weeks ago. The two transactions will boost annual revenues at DHG to more than €100 million, or by over €30 million in 2021, from €67 million last year. UC was purchased with a mix of debt and equity.
A total of six buy-and-build deals in the past 12 months have helped increase DHG annual revenues more than 3-fold since ArchiMed acquired the company in December 2019. “ArchiMed’s healthcare specialization, deal making experience, understanding of integration and – above all – their partnership philosophy, have made them an indispensable ally,” says DHG CEO Graham Ewart. “ArchiMed’s efficient and inclusive processes, from sourcing to integration, and their shared vision for one-stop shopping, mean we’re closing deals we couldn’t execute with just any partner,” says DHG Chairman, Carlos Alonso. As part of ArchiMed’s original acquisition, management acquired 20 percent of DHG.
With ArchiMed’s backing, DHG has transformed itself from a UK-focused manufacturer of innovative pressure care products into a European developer, manufacturer and direct distributor of products and services for the mobility challenged, addressing pressure ulcers, wounds, patient handling and rehabilitation. United Care brings DHG a range of sophisticated ceiling, floor and bathroom transfer systems designed to provide a maximum of independent movement for the immobile. Talley Group, the company acquired by DHG earlier this month, designs vacuum and pressure application therapies for preventing and treating Deep Vein Thrombosis and acute and chronic wounds – conditions often tied to a lack of movement.
Post-consolidation synergies in research, production, sales, and distribution throughout Europe and the rest of the world have pushed DHG’s annual organic growth into double digits since ArchiMed’s first partnered with the group. “Our investment in DHG demonstrates one plus one equals more than two,” says ArchiMed Partner Antoine Faguer. “We’re using knowledge and connections – a majority of us have have healthcare operating backgrounds – and financing, to help realize DHG’s ambitions.”
MED Platform I, which holds DHG, partners with growth companies, buying majority stakes for €50-to-€500 million in association with owners and managers. MPI provides platforms with the resources to broaden product lines and expand geographically, accelerating growth through aggressive acquisition. The fund owns two additional platforms: Bomi Group, Europe's leading specialist in healthcare supply chain services, and US-based NAMSA, the world's preeminent contract research organization for medtech. Multiple buy-and-build acquisitions by all these firms have been completed with more in the pipeline. A fourth platform investment is expected shortly. MPI closed on €1 billion in August 2020, making it the largest healthcare fund ever raised by a European-headquartered firm.
About ArchiMed – www.archimed-group.eu
ArchiMed is a leading private equity firm focused exclusively on the healthcare industry. ArchiMed serves as strategic and financial partner to European and North American small and middle-market businesses in targeted segments of healthcare, including pharmaceuticals, medical devices & ArchiMed SAS – Asset Management Company registered with AMF technology, healthcare IT and consumer health. ArchiMed bases its strategy upon integrated private equity, medical and operating expertise, and its unique trans-Atlantic platform that supports growth through internationalization. Over the last 20 years, ArchiMed’s leadership team has directly managed and invested in over 40 small to large-size healthcare companies globally, representing over €5 billion of investment.
ArchiMed manages nearly €2 billion in assets across four funds, small-cap-focused MED I and MED II, gene & cell therapy-focused PolyMED and mid-cap-focused MED Platform I. The latter is Europe’s largest healthcare fund at €1 billion. MED I is the top performing buyout fund on a global level for the 2014 vintage, returning in excess of six times invested capital on a gross basis. ArchiMed is an impact investor and a signatory of the Principles for Responsible Investment, pledged to uphold the United Nations’ Sustainable Development Goals.