Ancor and Merit Exit Carex Health
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Ancor and Merit Exit Carex Health

carex nf1Ancor Capital Partners and Merit Capital Partners have sold their portfolio company Carex Health Brands to Roscoe Medical, a portfolio company of Tenex Capital Management.

Carex Health Brands sells home healthcare products including home medical equipment, medication compliance, and reusable hot/cold products sold through pharmaceutical wholesalers, durable medical equipment dealers and national retail FDM (food, drug and mass merchants) chains. Brand names include Carex, Apex, Bed Buddy and TheraMed. The company was founded in 1979 and is headquartered in Boston (www.carex.com).

Ancor and Merit acquired Carex Health Brands in 2010, and led the company through three strategic acquisitions to in order to diversify its product line and customer base. Carex is the fifth investment that Merit has made in partnership with Ancor.

keene nf1“We are extremely proud of the accomplishments that Carex has made in the three years since we acquired the company,” said J. Randall Keene, Managing Director at Ancor. “During this time frame, we made acquisitions of Detach N’ Go, Uplift Technologies and Thermionics. The company also experienced organic growth by adding new customers and further penetrating existing customers. We are deeply appreciative of the management team and the partnership they embraced with Ancor and Merit.”

Ancor Capital Partners invests in companies with enterprise value of $25 million to $150 million that have EBITDAs from $5 million to $15 million. Sectors of interest include manufacturing, distribution, health care, consumer staples, and outsourcing. The firm is based in Fort Worth (www.ancorcapital.com).

Merit Capital Partners invests mezzanine and equity capital of $20 million to $60 million in companies with at least $5 million of EBITDA that are active in the manufacturing, distribution and services industries. Merit is currently investing its fifth fund, Merit Mezzanine Fund V, LP, with total commitments of $612.5 million. The firm was founded in 1993 and is based in Chicago (www.meritcapital.com).

Roscoe Medical, acquired by Tenex in July 2013, is a manufacturer and distributor of healthcare products such as pain management; respiratory therapy; home medical equipment; sleep therapy; and health and beauty products. The company has relationships with over 3,100 customers that serve patient and consumer care end markets including chiropractors, physical therapists, pain management physicians, internet retailers and home care dealers. Roscoe Medical is headquartered south of Cleveland in Strongsville, OH (www.roscoemedical.com).

Tenex Capital Management invests up to $100 million in middle-market companies in the transportation, industrial, manufacturing, and health and business services sectors. The firm has $452 million of committed capital and is based in New York (www.tenexcm.com).

“The chemistry we had with Ancor and Merit, coupled with their insight and commitment to capitalize external growth, enabled us to build the product and customer diversity that appealed to Roscoe Medical,” said Matt McElduff, President of Carex. “We look forward to this next stage of growth.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-3-14

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