Clayton, Dubilier & Rice has agreed to acquire Drive DeVilbiss Healthcare, a manufacturer of medical products, from Ferrer Freeman & Company. The transaction is expected to close in the fourth quarter of 2016.
Drive DeVilbiss Healthcare is a manufacturer of medical products such as wheelchairs, sleep surfaces, beds, respiratory equipment, power wheelchairs, power scooters, and patient room equipment. The company’s products are sold into the homecare, long-term care, retail and e-commerce channels. Drive DeVilbiss 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. The company is led by Harvey Diamond and is headquartered on Long Island in Port Washington, NY (www.drivemedical.com).
Drive DeVilbiss was formed in 2015 when Drive Medical – a portfolio company of Ferrer Freeman – acquired DeVilbiss Healthcare from Vestar. Since 2002 the company has completed 25 acquisitions that expanded its product portfolio, geographic reach and manufacturing capabilities.
“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 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.”
“We believe Drive has substantial runway for continued organic growth and the company also has a strong pipeline of acquisitions which should result in continued robust growth in the years ahead,” said Derek Strum, a CD&R Principal.
CD&R invests in European and US-based businesses. Since founding in 1978, the firm has invested $22 billion in 70 companies across a range of industries with a total transaction value of approximately $100 billion. CD&R is based in New York and London (www.cdr-inc.com).
Committed financing for this transaction has been obtained from Barclays, JPMorgan Chase, Citigroup, Capital One, and HSBC (USA). Drive DeVilbiss’ financial advisor was Robert W. Baird & Co. (www.rwbaird.com).
© 2016 Private Equity Professional • 8-31-16