Capitala Finance exits investment in Drive Medical

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Friday, January 6, 2017

CHARLOTTE, N.C. – Capitala Finance Corp. has exited its investment in Medical Depot, doing business as Drive Medical, netting a realized gain of about $5 million with a cumulative cash-on-cash return of 4.7x, it has announced. “Our investment was a great opportunity to work with an excellent management team that was passionate about their mission, fully knowledgeable of their market space and was able to effectively execute multiple, complex, international acquisitions in a short timeframe,” stated Joe Alala, chairman and CEO of Capitala, in a press release. Drive and Clayton, Dubilier & Rice announced in August that the New York-based private equity firm would be making a “significant investment” in the company. Previously, Ferrer Freeman & Co., another New York-based PE firm, was a minority stakeholder in Drive. Capitala is a provider of capital to lower and traditional middle market companies. Since 1998, its managed funds have participated in more than 138 transactions, representing more than $1.3 billion of investments in a variety of industries in North America.