Private equity firm Blue Wolf Capital Partners LLC has backed StateServ Holdings, a provider of durable medical equipment (DME) and related services. The investment from BlueWolf will help StateServe improve its software product DMETrack, which provides workflow automation and real-time analytics reporting to help operational performance.
Based in Tempe, Arizona, StateServ is a wholesale distributor of medical, apparatus and surgical equipment. The target sells DME products to post-acute care service providers and hospice customers throughout the U.S. Founded in 2004, StateServ operates through a network of approximately 1,300 DME provider locations and 21 warehouse facilities. Financial terms of the investment were not disclosed.
“An aging population and widespread demand for compassionate hospice care and skilled nursing have created a growing need for the products and technology StateServ offers,” states Blue Wolf principal Jeremy Kogler.” StateServ not only provides the equipment, but has pioneered a benefit management system that enables clinicians to focus on their primary role – patient care.”
StateServ will serve as a platform company for Blue Wolf capital to participate in a “rapidly consolidating industry.” Founded in 2005, Blue Wolf is a New York-based private equity firm that looks to make control investments in middle market companies. The PE firm targets companies that service the forest and building products, manufacturing and distribution, aerospace and defense and healthcare industries. Blue Wolf’s healthcare portfolio consists of companies such as Great Lakes Caring, ModernMD Urgent Care, Healthcare Laundry Systems and Pharmaceutical Strategies Group.
Other middle-market deals involving medical equipment include: Golden Gate Capital’s purchase of lab testing tool manufacturer Cole-Parmer; Fortive Corp.’s (NYSE: FTV) acquisition of Landauer Inc. (NYSE: LDR), a manufacturer of environmental radiation measurement tools; and A&E Medical’s deal to buy RTI Surgical’s cardiothoracic closure business. TripleTree served as financial adviser to StateServ.