More products, acquisitions & European growth as Direct Healthcare receives €150m investment
Less than four years after its private equity-backed management buyout in April 2016, Direct Healthcare Group (DHG) has secured substantial new funding via a secondary buyout by European healthcare specialist investor ArchiMed.
Founded in 2009, DHG design and manufacture pressure care, plus-size patient care and specialist seating solutions, as well as operating a nationwide bariatric equipment rental service.
Since its MBO in 2016, DHG has more than doubled its turnover in three years from £10.2million to £25million and increased headcount from 52 to 185 across seven sites in the UK, including its head office in Caerphilly, South Wales.
Much of its rapid growth has largely driven by a successful M&A strategy which has seen it expand its product and service offering through a raft of strategic bolt-on acquisitions.
The company acquired bariatric rental specialist Nightingale in June 2016, specialist seating manufacturer Kirton Healthcare in May 2017, the Transflo brand from Karomed in February 2018, pressure care cushion specialist Qbitus in May 2018, as well as bariatric rental company Poshchair Medical in December 2018.
Impressed by the company’s continuous growth, DHG’s Management Team was also awarded the Wales Growth Management Team 2019 at the BVCA Management Team Awards earlier this year.
Following the success, ArchiMed, a European investor in medical industries and care services with a portfolio covering European and North American companies, has completed a secondary buyout, acquiring DHG from NorthEdge Capital.
According to DHG, its base within the UK will remain stable under the existing management team, however, under ArchiMed’s ownership, the firm will continue to target strategic acquisitions.
Currently working with care providers in over 20 countries globally, Graham Ewart, Chief Executive Officer of Direct Healthcare Group, highlights that a particular focus will be on expanding its European presence.
“Ensuring that patients maintain active and independent lives is at the heart of our business model and having established ourselves as a market leader in the UK, Europe represents an enormous opportunity to expand our horizons and impact more lives,” stated Graham Ewart, CEO at Direct Healthcare Group.
“ArchiMed will be able to provide a gateway to this market, and we look forward to replicating our success in recent years and developing a strong partnership with the team in the coming months.”
Europe’s first independent private equity fund focused exclusively on the healthcare sector, ArchiMed’s leadership team has invested in over 40 small, medium and large-size healthcare companies with a combined value of more than €5 billion over the last two decades.
Antoine Faguer, Partner at ArchiMed, said: “We’re partnering with an exceptional management team with a proven track record when it comes to clever product innovation and driving successful mergers and acquisitions.
“Our common focus with management for the next phase of development will be on internationalising DHG’s footprint and expanding its product range, especially through further acquisitions.”
As a result of the €150 million further investment, DHG says its product portfolio will increase, offering an even broader offering of patient solutions to customers.
“A major reason why DHG and its management team offer an ideal platform for bolt-on deals is the admired brand they’ve built in a very scalable and underserviced sector of the healthcare industry,” finished Florian Demleitner, Principal at ArchiMed.
“Their reputation for developing technologically innovative products and running their business smartly is a magnet for partners looking to accelerate their own growth.”https://thiis.co.uk/more-products-acquisitions-european-growth-as-direct-healthcare-receives-e150m-investment/https://i0.wp.com/thiis.co.uk/wp-content/uploads/2019/12/Direct-Healthcare-Group-ArchiMed-Graham-Ewart.jpg?fit=900%2C604&ssl=1https://i0.wp.com/thiis.co.uk/wp-content/uploads/2019/12/Direct-Healthcare-Group-ArchiMed-Graham-Ewart.jpg?resize=150%2C150&ssl=1Mergers & AcquisitionsNewsroomSupplier NewsTrade Newsacquisition,ArchiMed,bariatric care,BVCA Management Team Awards,DHG,Direct Healthcare Group,Karomed,Kirton Healthcare,M&A,mergers and acquisitions,NorthEdge Capital,Poshchair Medical,Pressure Care,private equity,Qbitus,South Wales,Specialist seating,Transflo,Wales Growth Management TeamLess than four years after its private equity-backed management buyout in April 2016, Direct Healthcare Group (DHG) has secured substantial new funding via a secondary buyout by European healthcare specialist investor ArchiMed. Founded in 2009, DHG design and manufacture pressure care, plus-size patient care and specialist seating solutions, as well...Calvin BarnettCalvin Barnettcalvin@thiis.co.ukAdministratorTHIIS Magazine