Direct Healthcare Group, which is backed by ArchiMed, has acquired Talley Group, a provider of vacuum and pressure application therapies for conditions tied to lack of movement. No financial terms were disclosed.
ArchiMed’s Direct Healthcare Group acquires Talley
The integration of Talley broadens Direct Healthcare Group’s comprehensive range of innovative, technologically advanced products for the care of patients with limited mobility.
Direct Healthcare Group (DHG), one of three key investments of ArchiMed’s MED Platform I – Europe’s largest healthcare fund – has purchased Talley Group. Talley provides cutting-edge vacuum and pressure application therapies for conditions tied to lack of movement (notably acute and chronic wounds, and Deep Vein Thrombosis – or blood clots). Talley, founded in 1953, also makes therapeutic surfaces preventing both skin tissue deformation and ulcers that threaten the health of the immobile.
“The medical technology and knowhow of our companies are perfect complements,” says DHG CEO Graham Ewart. “Talley offers cross-selling and adds to DHG’s ability to improve the lives of patients with limited mobility.”
The equity-only purchase of UK-based Talley was financed by ArchiMed. It is DHG’s fifth acquisition since global private equity healthcare specialist ArchiMed bought DHG in December 2019 (DHG staff took a 20% stake). DHG 2021 revenues will rise to over €100 million from €67 million in 2020, due to Talley and organic growth. DHG revenues more than doubled in 2020, following four ArchiMed-backed deals. Those acquisitions transformed DHG from a UK-focused manufacturer of innovative pressure care products into a pan-European developer, manufacturer and distributor of products and services for the mobility-challenged, addressing pressure ulcers, wounds, patient handling and rehabilitation.
“We’re partnering with DHG financially, strategically and tactically in an aggressive program to consolidate a fragmented industry,” says ArchiMed Partner Antoine Faguer. ArchiMed and DHG have a list of over 100 potential transactions. “The services we’re building with ArchiMed are springboards for growth, innovation and materially improved healthcare,” says DHG Chairman Carlos Alonso.
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 U.S.-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 & 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.