H.I.G. Capital has acquired Health-E Commerce, an online retailer of products and services that are flexible spending account (FSA) and health savings account (HSA) eligible.
Health-E Commerce (HEC) sells more than 2,500 FSA and HSA eligible products through its two online stores – FSA Store and HSA Store – that serve more than 70 million consumers that are enrolled in pre-tax health and wellness accounts. FSAs and HSAs are tax-advantaged accounts that allow employees to set aside pre-tax money to pay for eligible health expenses.
HEC’s products and services are from top national brands and include over-the-counter medications (pain relievers, cold medications, and allergy medicines); medical devices (blood sugar monitors, blood pressure cuffs, and CPAP machines); bandages; skin and personal care products; contact lenses and solutions; hearing aids; and diagnostic devices (thermometers and oximeters). In 2017, as a complement to its national brands, HEC launched Caring Mill, its private-label line of health products.
HEC is headquartered in New York City and is led by CEO Preston Farrington. “We are excited to enter this new chapter with H.I.G. as we continue to enhance Health-E Commerce’s breadth of product and telehealth service offerings to better serve our customers,” said Mr. Farrington. “H.I.G.’s consumer and healthcare experience, combined with its significant resources, position us to continue executing upon our growth strategy and vision for the company.”
“We are thrilled to partner with the Health-E Commerce management team, who has an impressive track record of building a best-in-class business while helping their customers capture the full benefit of these tax advantaged programs,” said John Harroff, a managing director at H.I.G. “The company is able to provide a trusted, frictionless customer experience through their close partnerships with third party plan administrators. We see tremendous opportunity for continued growth and look forward to working with the team to build upon their success to-date.”
H.I.G. specializes in providing debt and equity capital to small and medium-sized companies and invests in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses. The firm has over $64 billion of equity capital under management. H.I.G. was founded in 1993 and is headquartered in Miami with additional offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta.
TPG Twin Brook was the administrative agent on debt financing to support H.I.G.’s acquisition of Health E-Commerce. Chicago-based TPG Twin Brook focuses on loans to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. The firm targets senior financing opportunities up to $200 million, with hold sizes across the platform ranging from $25 million up to $150 million. TPG Twin Brook’s products include opportunistic investments in second lien, mezzanine, and equity co-investments.
BofA Securities was the financial advisor to H.I.G. and William Blair & Company and Raymond James advised HEC.
© 2024 Private Equity Professional | June 26, 2024
