Blue Wolf Capital Partners has acquired StateServ Holdings, a provider of durable medical equipment to hospices and other post-acute care service providers. Under Blue Wolf ownership, StateServ’s CEO Paul DiCosmo and other members of the management team will continue to lead the company and have maintained a significant equity stake in the company.
StateServ has a national network of 1,300 durable medical equipment provider locations, along with 21 company-owned warehouse facilities, that serves more than 550 hospice providers in 46 states. Durable medical equipment (DME) includes wheelchairs, hospital beds, traction equipment, canes, crutches, walkers, kidney machines, ventilators, oxygen, monitors, pressure mattresses, lifts, and nebulizers. StateServ also provides its hospice customers with a real-time automated DME ordering and tracking system which integrates with both hospice medical records and accounting systems to improve workflow, administration and management of the DME process. StateServ was founded in 2004 by Anthony Perre and is headquartered in Tempe, AZ (www.stateserv.com).
“Blue Wolf’s investment, along with its operational expertise, will allow us to improve and expand our proprietary software solution DMETrack which provides workflow automation, real-time reporting, and analytics to optimize operational, clinical, and financial performance for our customers,” said Mr. DiCosmo. “We will continue to add DME providers to our national network, and we expect to expand into other post-acute care segments.”
“StateServ has longstanding recurring contracts with its customers, who have come to rely on the scalable, single point of entry cost containment system that helps them track, manage and service equipment that contributes to their patients’ daily well-being,” said Adam Blumenthal, Managing Partner of Blue Wolf. “The company’s technological advantage and commitment to innovation and quality will serve it well as it pursues a range of value-building initiatives, including strategic acquisitions. This is a signature Blue Wolf investment, and we look forward to building the company as we grow our footprint in this exciting market.”
Blue Wolf invests in companies in which management of relationships with complex constituencies – such as government and labor – can change organizations and create value. The firm’s investment criteria are minimum revenues of $25 million; minimum transaction size of $20 million; and a minimum investment size of $10 million. The firm focuses its efforts on companies based in the United States and Canada. Blue Wolf is currently raising its fourth fund with a target of $525 million. The firm is headquartered in New York (www.blue-wolf.com).
“An aging population and widespread demand for compassionate hospice care and skilled nursing have created a growing need for the products and technology StateServ offers,” said Jeremy Kogler, a Principal at Blue Wolf. “StateServ not only provides the equipment, but has pioneered a benefit management system that enables clinicians to focus on their primary role – patient care. This is a unique opportunity for Blue Wolf to invest in a platform with a market leading position in a rapidly consolidating industry. We are excited to work with CEO Paul DiCosmo and his team to further enhance the value of the business.”
TripleTree (www.triple-tree.com) was the financial advisor to StateServ on this transaction.
© 2017 Private Equity Professional | September 26, 2017
