Varsity Healthcare Partners has made an investment in Probo Medical, a reseller of medical equipment. Varsity partnered on this investment with the shareholders and executive team of the company.
Probo Medical provides new, used and refurbished ultrasound systems and ultrasound probes. The company uses its global supply chain to procure used ultrasound equipment from more than 250 source points and its internally trained workforce of repair technicians then refurbishes the equipment for resale to more than 500 customers globally.
In March 2018, Probo Medical acquired Tampa-based MedCorp, a refurbisher and reseller of ultrasound systems. The buy of MedCorp expanded Probo’s product line and made it one of the largest ultrasound-focused dealers in the world. Probo Medical was founded in 2014 by its CEO David Trogden and has 80 employees in Indianapolis (headquarters), Tulsa and Tampa (www.probomedical.com).
Mr. Trogden and the rest of the senior management team will continue to lead the company in partnership with Varsity. To build value in the company, Varsity will look to accelerate the growth of Probo Medical through (i) diversifying add-on acquisitions; (ii) expanding its equipment procurement efforts; and (iii) continuing to grow its multi-channel sales strategies.
“I couldn’t be more excited about our partnership with Varsity,” said Mr. Trogden. “Their deep expertise in healthcare and track record of partnering with dynamic businesses provide perfect alignment with Probo’s organic and acquisitive growth goals. Our team is tremendously excited about the future.”
Varsity Healthcare Partners invests from $10 million to $60 million in companies that are active in the healthcare services sector and have from $5 million to $15 million of EBITDA. Varsity is currently investing out of its second fund, Varsity Healthcare Partners II LP, which closed in December 2016 with $300 million of capital commitments. The firm was founded by David Alpern and Kenton Rosenberry and has offices in Los Angeles and Stamford (www.varsityhealthcarepartners.com).
Twin Brook Capital Partners (www.twincp.com) served as administrative agent on $56 million of financing to support Varsity’s acquisition of Probo Medical.
TripleTree (www.triple-tree.com) was the financial advisor to Probo Medical on this transaction.
© 2018 Private Equity Professional | October 2, 2018
