NEW YORK, Aug. 30, 2016 /PRNewswire/ -- Clayton, Dubilier
& Rice ("CD&R") announced an agreement today under which
CD&R-managed funds will make a significant equity investment
alongside existing management in Drive DeVilbiss Healthcare
("Drive"), a global manufacturer of medical products. Terms of the
transaction were not disclosed.
Formed in 2000, Drive has become a leading manufacturer of
medical products with a strong and consistent track record of
growth achieved both organically and through acquisitions. The
company's high-quality, diverse product portfolio, channel
footprint and global operating scale were strategically built by
its executive leadership team to take advantage of favorable
underlying demographic and industry trends. Drive's products
include a full suite of mobility, respiratory, sleep, bath and
personal care, specialty beds, pressure prevention, rehabilitation
and other related products, and are sold into the homecare,
long-term care, retail and e-commerce channels. Drive serves a
customer base of more than 15,000 dealers, home healthcare
providers, healthcare distributors, retailers and e-commerce
companies and sells its branded products in more than 80 countries
around the world.
"Drive's management team has done an exceptional job of
identifying and capitalizing on the increasing demand for its
products across multiple channels," said CD&R Partner Richard
J. Schnall. "We intend to play a constructive role by supporting a
very talented management team as it continues to grow the business
organically and through acquisitions, pursue operational excellence
and serve its customers with the highest quality products."
Since 2002, Drive has completed 25 acquisitions that have
expanded its product portfolio, geographic reach and manufacturing
capabilities. In July 2015, Drive
completed the transformational acquisition of DeVilbiss Healthcare,
a global manufacturer of respiratory and sleep products. The
acquisition provided Drive with a strong platform and a significant
cross-selling opportunity in the fast-growing respiratory and sleep
market segments, while increasing the company's manufacturing
capabilities and its market presence around the world. Since the
successful integration of DeVilbiss, Drive has operated under the
name of Drive DeVilbiss Healthcare.
Derek Strum, CD&R Principal,
added: "We believe Drive has substantial runway for continued
organic growth given the company's strong value proposition,
partnership approach with its customers and significant product
breadth. Drive also has a strong pipeline of acquisitions, which
should result in continued robust growth in the years ahead."
"We look forward to partnering with CD&R and tapping into
the Firm's capabilities as we continue to execute our strategy
based on expanding our product lines and geographic reach,
providing rewarding career opportunities, and, most importantly,
enhancing the quality of life of the people we touch," said
Harvey Diamond, Chairman and Chief
Executive Officer of Drive.
Richard Kolodny, President of
Drive, said, "As successful as we have been since our founding in
2000 and with the support we received from Ferrer Freeman &
Company over the past eight years, we believe that our growth story
is just beginning. With CD&R as our partner, we are confident
that we will realize the full potential of the company."
CD&R has obtained committed financing from Barclays,
JPMorgan Chase Bank, N.A., Citigroup Global Markets, Inc., Capital
One, National Association and HSBC Securities (USA) Inc. Barclays, J.P. Morgan Securities LLC
and Citi acted as financial advisors and Debevoise & Plimpton
LLP acted as legal advisor to CD&R in connection with the
transaction, which is expected to close in the fourth quarter of
2016. Drive's financial advisor was Robert W. Baird &
Co., and its legal advisor was Bryan Cave LLP.
About Clayton, Dubilier & Rice
Founded in 1978, Clayton, Dubilier & Rice is a private
investment firm. Since inception, CD&R has managed the
investment of $22 billion in 70
companies representing a broad range of industries with an
aggregate transaction value of more than $100 billion. The Firm's healthcare-related
investments include VWR International, a provider of laboratory
products and services; AssuraMed, a distributor of specialty
medical products into the home; Envision Healthcare, a provider of
facility-based physician services and medical transportation
services; PharMEDium, a provider of hospital pharmacy-outsourced
sterile compounding services; Healogics, a provider of advanced
wound care services; and Vets First Choice, a provider of pharmacy
and other value-added services for veterinary practices. The Firm
has offices in New York and
London. For more information,
visit www.cdr-inc.com.
About Drive DeVilbiss Healthcare
Headquartered in Port Washington, New
York, Drive DeVilbiss Healthcare manufactures a complete
line of medical products, including mobility products, sleep and
respiratory products, beds, bariatric products, wheelchairs, sleep
surfaces and pressure prevention products, self-assist products,
power operated wheelchairs, rehabilitation products, patient room
equipment, personal care products and electrotherapy devices.
Currently, the company has corporate offices, manufacturing
facilities and distribution facilities located throughout
the United States, Canada, the United
Kingdom, France,
Germany, China, Hong
Kong, Romania, Australia, the
Netherlands and India. The
company markets its products to customers located throughout
the United States, Europe, Canada, Mexico, South
America, Latin America, the
Middle East and Asia. For more information, visit
www.drivemedical.com.
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