M&A Deal Summary

Capitala Group, Brookside Capital Partners, CD&R and Ferrer Freeman Acquire Drive DeVilbiss Healthcare

On October 11, 2011, asset manager Capitala Group, mezzanine finance firm Brookside Capital Partners, private equity firm CD&R and private equity firm Ferrer Freeman acquired medical products company Drive DeVilbiss Healthcare

Acquisition Highlights
  • This is Capitala Group’s 2nd, Brookside Capital Partners’ 1st, CD&R’s 2nd and Ferrer Freeman’s 5th transaction in the Medical Products sector.
  • This is Capitala Group’s 40th, Brookside Capital Partners’ 6th, CD&R’s 21st and Ferrer Freeman’s 20th transaction in the United States.
  • This is Capitala Group’s 1st, Brookside Capital Partners’ 1st, CD&R’s 1st and Ferrer Freeman’s 2nd transaction in New York.

M&A Deal Summary
Date 2011-10-11
Target Drive DeVilbiss Healthcare
Sector Medical Products
Buyer(s) Capitala Group
Brookside Capital Partners
CD&R
Ferrer Freeman
Deal Type Buyout (LBO, MBO, MBI)
Advisor(s) Robert W. Baird & Co., Inc. (Financial)
Bryan Cave Leighton Paisner LLP (Legal)

Target

Drive DeVilbiss Healthcare

Port Washington, New York, United States
website
Drive DeVilbiss Healthcare manufactures a complete line of medical products, including mobility products, sleep and respiratory products, beds, bariatric products, wheelchairs, sleep surfaces and pressure prevention products, self-assist products, power operated wheelchairs, rehabilitation products, patient room equipment, personal care products and electrotherapy devices. Currently, the company has corporate offices, manufacturing facilities and distribution facilities located throughout the United States, Canada, the United Kingdom, France, Germany, China, Hong Kong, Romania, Australia, the Netherlands and India. The company markets its products to customers located throughout the United States, Europe, Canada, Mexico, South America, Latin America, the Middle East and Asia.

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Buyer(S) 4

Buyer

Capitala Group

Charlotte, North Carolina, United States

Investor Investor Investor Investor Investor

website

Category Asset Manager
Founded 1998
PE ASSETS 3.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Capitala Group is an asset manager that provides equity and mezzanine capital to mid-sized companies valued up to $250 million. Funds are generally used to support growth needs, add-on acquisitions, management/leveraged buyouts, and recapitalizations. Capitatala will invest across the US, but generally targets opportunities located in the Southeast. Industry preferences include building products, business services, consumer/reteail, general industrial, healthcare, and technology. Prospective companies typically have revenues greater than $10 million and EBITDA of at least $3 million. Capitala was formed in 1998 and is headquartered in Charlotte, North Carolina.

DEAL STATS #
Overall 41 of 89
Sector (Medical Products) 2 of 3
Type (Buyout (LBO, MBO, MBI)) 20 of 38
State (New York) 1 of 3
Country (United States) 40 of 88
Year (2011) 7 of 11
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-09-20 Sur La Table

Brownsburg, Indiana, United States

Sur La Table is a multi-channel chain retailer offering a broad selection of premium quality goods for the kitchen and table. Sur La Table was founded in 1972 and is based in Brownsburg, Indiana.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-10-20 PureRED

Stone Mountain, Georgia, United States

PureRED Integrated Marketing is an advertising agency that designs and executes integrated retail marketing programs including pre-media advertising execution, digital creative/design, digital asset management services, photographic services, and interactive services for national retailers. PureRED was founded in 1967 and is based in Stone Mountain, Georgia.

Buy -
Buyer

Brookside Capital Partners

Investor Investor Investor Investor Investor

website

Category Mezzanine Finance Firm
Founded 2001
PE ASSETS 600M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Brookside Capital Partners is an investment management firm focused on stable lower-middle market companies in the US. The Firm typically commits $5 to $30 million per transaction to support buyouts, leveraged recapitalizations, strategic acquisitions and growth. Potential businesses generally have revenue greater than $15 million, and EBITDA of at least $4 million. Industries of interest include business services, consumer, distribution, healthcare, manufacturing, and transportation and logistics. Brookside Capital Partners was established in 2001 and is based in Stamford, Connecticut.

DEAL STATS #
Overall 6 of 39
Sector (Medical Products) 1 of 2
Type (Buyout (LBO, MBO, MBI)) 2 of 9
State (New York) 1 of 1
Country (United States) 6 of 39
Year (2011) 3 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-09-07 Pediatric Health Choice

Tampa, Florida, United States

Pediatric Health Choice is a premier provider of alternative-site healthcare services for medically-complex, technology-dependent, and behaviorally-challenged children. Pediatric Health Choice is based in Tampa, Florida.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-11-09 MSI

Plain City, Ohio, United States

MSI is a proponent of quality literature and the parent company of three different businesses each focused on promoting and selling juvenile books, The Junior Library Guild, Darby Creek Publishing and The Reading Circle. MSI is based in Plain City, Ohio.

Buy -
Buyer

CD&R

New York, New York, United States

Investor Investor Investor Investor Investor

website

Category Private Equity Firm
Founded 1978
PE ASSETS 30.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Clayton, Dubilier & Rice LLC (CD&R) is a large private equity firm that targets non-core divestitures of large corporations, growth equity financings, traditional buyouts, and corporate/family partnerships. CD&R looks for opportunities in North America, Western Europe, and Asia and will consider businesses in a wide range of sectors including consumer/retail, healthcare, industrials, and services. Prospective companies generally lead their respective markets, have stable cash flows, and possess competitive advantages through differentiated products, services, or processes. CD&R was formed in 1978 and has offices in New York City and London.

DEAL STATS #
Overall 27 of 85
Sector (Medical Products) 2 of 4
Type (Buyout (LBO, MBO, MBI)) 6 of 9
State (New York) 1 of 3
Country (United States) 21 of 63
Year (2011) 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-09-30 Hussmann

Bridgeton, Montana, United States

Hussmann Corp. is a manufacturer of refrigerated display cases and systems.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-05-31 Roofing Supply Group

Dallas, Texas, United States

Roofing Supply Group LLC is a wholesale distributor of roofing supplies and related materials.

Buy -
Buyer

Ferrer Freeman

Greenwich, Connecticut, United States

website

Category Private Equity Firm
Founded 1995
PE ASSETS 900M USD
Size Middle-Market
Type Sector Focused
DESCRIPTION

Ferrer Freeman & Co. (FFC) is a private equity firm that invests exclusively in healthcare companies generating sales minimum $20 to $200 million. FFC also invests in clinical products and outsourcing/infrastructure businesses serving the healthcare sector. FFC looks to commit $10 to $40 million per transaction and focuses primarily on growth capital financings and build-ups. However, the Firm will also selectively fund buyouts as well. Ferrer Freeman & Co. LLC was formed in 1995 and is based in Greenwich, Connecticut.

DEAL STATS #
Overall 20 of 21
Sector (Medical Products) 5 of 5
Type (Buyout (LBO, MBO, MBI)) 11 of 12
State (New York) 2 of 2
Country (United States) 20 of 21
Year (2011) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-07-21 Vitalize Consulting Solutions

Kennett Square, Pennsylvania, United States

Vitalize Consulting Solutions is a provider of clinical, business and information technology (IT) services for healthcare enterprises.Vitalize Consulting Solutions primarily serves customers in the commercial hospital market that are implementing electronic health record (EHR) products and systems, providing a range of services including strategic consulting, system implementation and operational improvement.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-01-31 Ernest Health

Mechanicsburg, Pennsylvania, United States

Ernest Health is a developer and operator of inpatient rehabilitation and related post-acute healthcare services. The Company primarily focuses on development opportunities in the western and southwestern U.S. Ernest Health was founded in 2003 and is based in Mechanicsburg, Pennsylvania.

Sell $400M
Mergr

Product

Company

Legal