Blue Wolf Capital Partners LLC has made an undisclosed investment in StateServ Holdings. Also, Paul DiCosmo, CEO of StateServ and other members of the management team, will retain a “significant” stake in StateServ. TripleTree served as financial adviser to StateServ on the transaction. Based in Tempe, Arizona, StateServ is a provider of of durable medical equipment management solutions to hospices and other post-acute care service providers.
TEMPE, Ariz.–(BUSINESS WIRE)–StateServ Holdings (“StateServ” or “the Company”) announced today that it has received an equity investment from an affiliate of Blue Wolf Capital Partners LLC (“Blue Wolf”). StateServ is the leading provider of durable medical equipment (“DME”) management solutions to hospices and other post-acute care service providers in the United States. Blue Wolf is a private equity firm that seeks to invest responsibly to unlock and increase value, with a sector focus that includes healthcare services.
Paul DiCosmo, Chief Executive Officer of StateServ, and other members of the management team will continue to lead the Company and have maintained a significant equity stake in StateServ. Financial terms of the transaction were not disclosed.
StateServ, based in Tempe, Arizona, has built the leading technology-enabled cost containment platform serving the post-acute care market. Through a national network of 1,300 DME provider locations, along with 21 Company-owned warehouse facilities, StateServ offers the full spectrum of DME benefit management solutions to more than 550 hospice providers serving more than 80,000 patients per day in 46 states. The Company’s real-time automated ordering and tracking system integrates with hospice medical records and various accounting systems for significant workflow improvements and simplified administration and management, reducing costs and improving efficiencies for care providers.
Jeremy Kogler, Principal at Blue Wolf, said, “An aging population and widespread demand for compassionate hospice care and skilled nursing have created a growing need for the products and technology StateServ offers. StateServ not only provides the equipment, but has pioneered a benefit management system that enables clinicians to focus on their primary role – patient care. This is a unique opportunity for Blue Wolf to invest in a platform with a market leading position in a rapidly consolidating industry. We are excited to work with Paul and his team to further enhance the value of the business.”
Mr. DiCosmo said, “Blue Wolf’s investment, along with its operational expertise, will allow us to improve and expand our proprietary software solution (DMETrack)™ which provides workflow automation, real-time reporting, and analytics to optimize operational, clinical, and financial performance for our customers. We will continue to add DME providers to our national network, and we expect to expand into other post-acute care segments. Blue Wolf shares our goal of making it easier for our customers to provide essential products that benefit patients and their families with quality and compassionate care.”
Adam Blumenthal, Managing Partner of Blue Wolf, added, “StateServ has longstanding recurring contracts with its customers, who have come to rely on the scalable, single point of entry cost containment system that helps them track, manage and service equipment that contributes to their patients’ daily well-being. The Company’s technological advantage and commitment to innovation and quality will serve it well as it pursues a range of value-building initiatives, including strategic acquisitions. This is a signature Blue Wolf investment, and we look forward to building the Company as we grow our footprint in this exciting market.”
TripleTree acted as the exclusive financial advisor to StateServ for this transaction.
Founded in 2004 and based in Tempe, AZ, StateServ is a durable medical equipment (DME) provider offering the leading technology-enabled cost containment platform for the post-acute care market. Through a national network of 1,300 DME provider locations, along with 21 Company-owned warehouse facilities, StateServ offers the full spectrum of DME benefit management solutions to more than 550 hospice providers in 46 states. StateServ’s mission is to use technology and optimized processes to help its customers provide the best possible care for patients while giving them the tools they need to save costs and time. For more information, please visit www.stateserv.com.
About Blue Wolf Capital Partners
Blue Wolf Capital Partners LLC is a private equity firm that specializes in control investments in middle market companies. Leading by experience, and with a commitment to excellence, Blue Wolf transforms companies strategically, operationally and collaboratively. Blue Wolf manages challenging situations and complex relationships between business, customers, employees, unions, and regulators to build value for stakeholders. For additional information, please visit www.bluewolfcapital.com.