The Healthcare Supplier M&A Market is Booming – and Private Equity Firms Are Willing Participants

Vertical: Healthcare Supplies & Suppliers
Author: JC Lupis
Date: June 2021

The recent news that a group of private equity buyers – Blackstone, Carlyle and Hellman & Friedman – have teamed up to buy Medline for more than $30 billion is an exclamation point on a booming M&A market for healthcare suppliers. The deal – which the Wall Street Journal says may represent the largest healthcare leveraged buy-out ever – is representative of a market that has surged in recent months, buoyed in large part by the COVID-19 pandemic.

Indeed, with the world’s eyes for several months trained on personal protective equipment (PPE), manufacturers and distributors have garnered renewed attention as the pandemic underscored the importance of the supply chain. Fitch Ratings says “what started as potentially a one- or two-quarter surge has become a multiyear increase in demand.” Indeed, hospitals and other providers are likely to sustain enhanced PPE measures in the future, while the pent-up demand for elective procedures – which are PPE-heavy – is also contributing to continuing demand. Meanwhile, in the words of Richard Scheffler, health economics professor at UC Berkeley, “there are economies of scale in this production model. As you get bigger, draw more capital and develop new technology, the cost per unit drops.”

But it’s not only PPE suppliers that are garnering appeal; suppliers of all manners of equipment and tools are being acquired, and PE firms are in many cases the protagonists.

The following is a sample of healthcare supplier acquisitions that have taken place this year alone:

Target: Cantel Medical
Date: June 2021 (completed)
Product: Infection prevention products and services to endoscopy, dental, dialysis and life sciences customers
Press Release

Buyer: BMC Protect
Target: 360 Medical Supply
Date: May 2021 (announced)
Product: Specialty distributor of a range of medical supplies including incontinence products, dental products, disposable gloves, and industrial products
Press Release

Merger: EWLL Acquisition Corp. / American Health Protection, Inc.
EWLL Acquisition Corp. Parent: eWellness Healthcare Corporation
Date: May 2021 (announced)
Product: American Health Protection is a supplier of “Made in the US” personal protection equipment such as disinfectants, masks, and hand sanitizers
Press Release

Buyer: Strive Medical
Buyer Parent: NMS Capital
Target: Summit Express Medical Supply
Date: May 2021 (announced)
Product: Distributor of Durable Medical Equipment (“DME”), specializing in catheter and catheter supplies
Press Release
Note: NMS Capital recapped Strive Medical, a provider of direct-to-patient urological and wound care supplies to patients in the home setting, in December 2020.

Buyer: Innova Medical Group, Inc.
Buyer Parent: Pasaca Capital
Target: Pacific PPE Corporation (3PE)
Date: April 2021 (announced)
Product: Designer, manufacturer and distributor of N95 and other face masks for personal protection
Press Release

Buyer: Flexpoint Ford
Target: Canadian Hospital Specialties
Date: April 2021 (announced)
Product: Specialty manufacturer and distributor of medical and surgical products
Press Release

Buyer: BPOC
Target: Home Care Delivered, Inc.
Date: April 2021 (announced)
Product: Direct-to-patient provider of insurance covered medical supplies for diabetes, incontinence, urology, ostomy and wound care products delivered directly to the patient’s home
Press Release

Buyer: Aspen Surgical
Buyer Parent: Audax Private Equity
Target: BlueMed Medical Supplies
Date: March 2021 (announced)
Product: Manufacturer of high-quality, cost-effective disposable shoe covers and other personal protection products
Press Release

Buyer: TEAM Technologies
Buyer Parent: Clearlake Capital Group
Target: ViruDefense
Date: March 2021 (announced)
Product: Supplier of fully domestically produced N95 respirator masks
Press Release

Buyer: Platinum Equity
Target: NDC
Target Parent: Court Square Capital Partners
Date: March 2021 (announced)
Product: Provider of complete supply chain solutions to distributors, manufacturers, GPOs and providers, specializing in medical, dental, physical therapy, LTC, homecare and specialty end markets
Press Release

Merger: American Medical Technologies / RestorixHealth
American Medical Technologies Parent: One Equity Partners
RestorixHealth Parent: Leonard Green & Partners
Date: March 2021 (announced)
Product: American Medical Technologies is an independent provider of wound care, ostomy, urology and tracheostomy supplies and services to long term and post-acute care facilities
Press Release

Buyer: Mountaingate Capital
Target: BioDerm
Date: January 2021 (announced)
Product: Provider of disposable medical devices and wound care supplies to patients with chronic conditions
Press Release

Buyer: Partners Group
Target: Careismatic Brands
Target Parent: New Mountain Capital
Date: January 2021 (announced)
Product: Designer, marketer, and distributor of medical apparel, footwear, and accessories
Press Release

Buyer: Infab Corporation
Buyer Parent: HKW
Target: MediDrapes
Date: January 2021 (announced)
Product: Provider of sterile disposable protective drapes for medical imaging equipment
Press Release

As seen above, private equity firms weren’t only acquiring suppliers, they were also cashing in on existing investments. And this was also true last year when some investors decided to realize the gains from a fast-evolving market, including:

  • Water Street Healthcare exiting Key Surgical, selling the provider of consumable medical products to STERIS;
  • Linden Capital Partners and DW Healthcare selling Z-Medica, a manufacturer and marketer of patented hemostatic products, to Teleflex;
  • Linden Capital Partners also exiting Solara Medical Supplies, the largest independent distributor of continuous glucose monitors that offers a range of direct-to-patient diabetes management supplies, to AdaptHealth; and
  • The Riverside Company selling ActivStyle, a direct-to-consumer supply company that provides incontinence and urology products, also to AdaptHealth.

Want to see all Healthcare Supplier deals in Q1 2021? Purchase GHA’s Healthcare M&A Deals spreadsheet here.

For more information, please contact GHA Managing Director JC Lupis at