Seven Hills and Twin Brook Build Medical Platform

Seven Hills and Twin Brook Build Medical Platform

Reliable Medical Supply (RMS), a portfolio company of Seven Hills Capital, has completed the add-on acquisition of A&A Medical Supply. Seven Hills acquired RMS in November of 2018.

A&A Medical Supply is a provider of complex rehabilitation technology (CRT) and equipment including power wheelchairs, lift chairs, lifts and ramps, rollators and scooters. The company’s service area includes all of Ohio and northern Kentucky. A&A was founded in 2005 by CEO Anton Yeranossian and is headquartered near Cleveland in Chagrin Falls, Ohio.

Reliable Medical Supply is a provider of CRT, clinical respiratory products, and other durable medical equipment to adult patients across Minnesota and parts of western Wisconsin. The company, founded in 1989 and led by CEO Debra Kalk, is headquartered near Minneapolis in Brooklyn Park, Minnesota.

“We are pleased to welcome A&A to the RMS Family,” said Ms. Kalk “When we decided to launch an aggressive growth plan in late 2018, we targeted companies who share the same patient-centric attitude that has led to RMS’s success. By partnering with Anton and his team at A&A, I am confident we can continue to improve care solutions across the Midwest.”

Seven Hills Capital makes control investments in healthcare companies with $1 million to $8 million of EBITDA. Sectors of specific interest within healthcare include services, post-acute care, behavioral health, medical staffing, technology-enabled services and information technology. Seven Hills was founded in December 2016 by Matthew Pettit and is headquartered in Chicago.

“We partnered with RMS to help the company expand its patient-first approach to a larger population,” said Mr. Pettit. “The A&A acquisition is a meaningful step forward in executing on this strategy and expanding RMS’s footprint to new geographies. We are excited to welcome the A&A team to RMS and continue our growth plans together.”

Twin Brook Capital Partners, the middle-market direct lending arm of Angelo Gordon, served as administrative agent on financing to support the buy of A&A by RMS.

Chicago-based 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. Twin Brook’s products include opportunistic investments in second lien, mezzanine, and equity co-investments.

Private Equity Professional | April 17, 2020

To search in site, type your keyword and hit enter