The Healthcare group of CIT Corporate Finance served as Sole Lead Arranger in a $50 million senior secured credit facility for QMES, a distributor of durable medical products and a portfolio company of Quadrant Management.
The new facility will be used to refinance existing debt and provide for ongoing working capital needs. The financing was provided by CIT Bank, the US commercial bank subsidiary of CIT.
QMES is a distributor of durable medical equipment. The company’s revenues are primarily generated from the rental of medical equipment for home use and sales of medical supplies.
QMES was formed by Quadrant Management in May 2012 to acquire Pennsylvania-based Tri-County Medical Equipment and Supply, and has since acquired nine other durable medical equipment companies. The company operates with four regional headquarters (Oaks, PA; Lakewood, NJ; Mt. Vernon, NY; Warwick, RI) and currently employs approximately 800 employees (no website found).
“QMES derives revenue from an extensive network of referral sources and maintains and grows these relationships by providing high quality services, clinical expertise and differentiated offerings designed to improve patient outcomes on a region-by-region basis,” said Luke McGee, Chairman and CEO of QMES. “We’ve expanded our presence significantly with a series of acquisitions over the past two years. CIT clearly understood our sector and was the ideal partner to support us as we looked to evolve our financial structure to reflect to the company we’ve become and position ourselves for the future.”
Quadrant Management invests in companies that have from $1 million to $10 million of EBITDA. The firm has experience across multiple industries and is effectively industry agnostic. Quadrant is based in New York (www.quadrantmgt.com).
“QMES has an impressive track record of growth having completed 10 acquisitions since 2012 and effectively establishing itself as one of the largest medical equipment home delivery companies on the East Coast,” said William Douglass, Managing Director and Group Head of CIT Corporate Finance, Healthcare. “We were able to leverage our extensive expertise in middle market healthcare finance to deliver a total financing solution that met their needs. We look forward to building this relationship.”
CIT Corporate Finance provides lending, leasing and other financial and advisory services to the small business and middle market sectors with a focus on specific industries, including: chemicals, commercial real estate, communications, energy, entertainment, gaming, healthcare, industrials, information services & technology, restaurants, retail, and sports & media (www.cit.com/corporatefinance). The corporate finance group is part of CIT, a bank holding company with more than $35 billion in assets. CIT was founded in 1908 and is based in New York (www.cit.com).
“CIT’s deep industry experience in the healthcare industry and comfort structuring transactions for entrepreneurial companies was a great fit for Quadrant’s needs as they looked to simplify their financial picture and further solidify their position in the markets they serve,” said Michael Coiley, Managing Director, CIT Corporate Finance, Healthcare.
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-7-14