California M&A firm buys into HME biz
HUNTINGTON BEACH, Calif. - Providential Holdings secured $5.5 million in financing in late June, pushing it closer to closing a deal on Phoenix-based Western Medical. PHI, an M&A firm which specializes in businesses with high-growth potential, agreed in June to pay $5.25 million in cash for Western Medical, which filed for Chapter 11. "I think they're going to wait to make sure this goes through the bankruptcy court before they do anything," said Kevin Palamara, a director with Boston-based investment banking firm Provident Healthcare Partners. PHI didn't return a call seeking comment but its Web site said the company also acts as an incubator for emerging companies. "It looks like they acquire distressed companies," said Dexter Braff, president of Pittsburgh, Pa.-based The Braff Group. "What's interesting is they aren't industry specific."