A large private equity firm might purchase multi-line DME manufacturer Drive DeVilbiss, according to a report by the Reuters news service that was partly confirmed by Drive DeVilbiss in a subsequent statement.
Citing unnamed sources, Reuters reported the potential sale could see Drive DeVilbiss valued at more than $1 billion, including debt. According to Reuters’ unnamed sources, Drive DeVilbiss has hired investment bank Robert W. Baird & Co to carry out a sale process.
Without naming the buyer, Drive DeVilbiss released a subsequent statement confirming that it was pursuing a larger private equity firm to replace Ferrer Freeman & Company, which has partly owned the DME giant as a minority stockholder since 2008.
Ferrer Freeman & Company supplied Drive DeVilbiss with the capital the manufacturer needed to fuel a series of 25 acquisitions around the globe that helped the company quickly expand. Drive DeVilbiss said it has sought a larger private equity firm to continue that growth strategy.
“Partnering with Ferrer Freeman enabled the company to continue to expand throughout Europe and North America,” a statement from Drive-DeVilbiss read. “Ferrer Freeman has been extremely supportive of the management team and continues to be bullish on the Company’s future.
“Given the Company’s position within the healthcare industry, its prospects, multiple channels of growth and acquisition strategy, the management team has decided to pursue a partnership with a larger private equity firm to replace Ferrer Freeman and provide the Company with significant capital to continue its growth strategy,” the statement added.