Platinum Equity has acquired NDC, a distributor of consumable healthcare supplies, from Court Square Capital Partners. Court Square acquired NDC in February 2016 from Silver Oak Services Partners.
NDC is a distributor of branded and private label supplies to the healthcare industry with specializations in the medical, dental, physical therapy, long-term care, homecare and specialty markets.
NDC subsidiaries, divisions and brands include Preferred Medical, Wolf Medical, Main Street Vaccines, National Physician Care, MedPlus Services USA, NuEdge Alliance, Wolf-Pak, Quala Dental Products and Pro Advantage.
The company operates as a master distributor, purchasing medical supplies directly from manufacturers and providing a broad product line to local, regional, and national distributors who handle the last mile of delivery to health care providers. NDC has more than 685,000 square feet of warehouse space at its headquarters in Nashville (485,000 square feet) and at its satellite warehouses in Illinois (2), Florida (2), Arkansas, Kansas, California, Tennessee, Maryland and Texas. NDC stocks more than 90,000 SKUs with access to over 130,000 SKUs from more than 700 manufacturers. NDC president and CEO Mark Seitz, who has been with the company for 16 years, will continue to lead the business post-closing under Platinum Equity’s ownership.
“We are proud to have partnered with Mark Seitz and the NDC management team over the past five years to grow its diverse customer base, product lines and end markets,” said Jeff Abramoff, a partner at Court Square. “The success of this transaction is a result of the differentiated position NDC has in the healthcare supply chain and outstanding work from the NDC management team.”
“NDC has built an impressive national distribution platform with substantial opportunity for growth,” said Jason Price, a managing director at Platinum. “The company has strong leadership, a service-oriented culture and a unique value proposition that makes the delivery of medical supplies more efficient. Our plan is to continue building scale organically and through additional partnerships or M&A activity to grow the company’s footprint and expand its base of customers and suppliers.”
Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. The firm is currently investing from Platinum Equity Capital Partners V LP, a $10 billion buyout fund, and Platinum Equity Small Cap Fund LP, a $1.5 billion buyout fund focused on the lower middle market. The firm has completed more than 300 acquisitions since its founding in 1995 and is headquartered in Beverly Hills.
New York City-based Court Square, the seller of NDC, invests in middle-market companies that have enterprise values of $150 million to $1.5 billion. Sectors of interest include business services, general industrials, healthcare, and technology/telecommunications.
BMO Harris Bank provided financing to support the buy of NDC by Platinum Equity, and William Blair, Cantor Fitzgerald, and Robert W. Baird were the financial advisors to Court Square.
© 2021 Private Equity Professional | March 9, 2021