After a 4.5 year hold and four add-on acquisitions, Incline Equity Partners has sold ASP Global, a medical products distributor, to Platinum Equity.
ASP sells more than 3,400 SKUs of products to health systems, labs, group purchasing organizations (GPOs), and integrated delivery networks (IDNs). ASP’s consumable products—sourced from more than 150 factories in 15 countries—are sold under six categories: lab supplies, blood collection, wound and injury protection, critical care, staff apparel, and rehab mobility.
Specific product examples from ASP include patient amenity kits, slipper socks, scrubs and clinician apparel, disposable personal protective equipment (PPE), thermometers, maternity kits, cups and cutlery, pressure-infuser bags, pill cutters, tourniquets, blankets, and stethoscopes. ASP is led by CEO Doug Shaver and is headquartered near Atlanta in Austell, Georgia.
“Our partnership with Incline has allowed us to complete four acquisitions, adding new product categories and expanding the breadth of the existing portfolio,” said Mr. Shaver. “Our team has enjoyed the dynamic partnership with Incline, which has positioned us for continued growth.”
The four add-on acquisitions were Ohio-based Shumsky Therapeutic Pillows (March 2020); Georgia-based Primo (June 2021); Tennessee-based RAM Scientific (December 2022); and Tennessee-based MediCore Medical Supply (June 2023).
“We are proud that ASP has more than doubled revenue since our investment in January 2020,” said Tom Ritchie, a partner at Incline. “Together, we strengthened the commercial team, driving organic growth through new hospital system wins and increasing wallet share with existing customers.”
Incline Equity invests in North America-based companies with enterprise values of $25 million to $750 million. Sectors of interest include services, value-added distribution, and specialized light manufacturing. In October 2023, Incline closed its sixth fund, Incline Equity Partners VI LP, with $1.9 billion of capital. The Pittsburgh-based firm was formed in 2011 and is led by its Managing Partner Jack Glover and Senior Partner Leon Rubinov.
Platinum has experience investing in the healthcare products distribution industry. In March 2021, it acquired Nashville-headquartered NDC from Court Square Capital Partners. NDC is a distributor of branded and private label healthcare supplies with specializations in the medical, dental, physical therapy, long-term care, homecare and specialty markets. As NDC serves a different part of the medical supplies market, ASP and NDC will operate as separate, standalone companies in Platinum Equity’s portfolio.
“Healthcare providers are intensely focused on managing costs and increasing control of their supply chains,” said Louis Samson, a co-president of Platinum. “By providing direct sourcing solutions featuring customized, quality products, ASP has created an attractive value proposition. Based on our assessment, ASP’s business model has resonated with customers and has significant room for growth.”
Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. Beverly Hills-headquartered Platinum was formed in 1995 by Tom Gores and over the past 28 years has completed more than 450 acquisitions.
“ASP has an experienced management team that has articulated a compelling vision for the future,” said Jason Price, a managing director at Platinum Equity. “We have a shared belief in what ASP can become and are excited to get to work. ASP has a lot of runway to continue expanding organically and we expect to be active in pursuit of additional M&A opportunities, too.”
Solomon Partners was the financial advisor to Platinum Equity on the ASP acquisition.
© 2024 Private Equity Professional | August 9, 2024
