Cinven sees ‘strong growth trajectory’ for NSM

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Friday, October 11, 2019

NASHVILLE, Tenn. – With National Seating & Mobility’s expansion into Canada earlier this year and its expected new ownership by a private equity firm based in London, “expansion into new markets could certainly be a future consideration,” says CEO Bill Mixon.

The company announced Oct. 4 that it has agreed to be acquired by Cinven, which has offices in nine countries, including the U.S., in New York.

“With their international presence and commitment to NSM’s future growth, expansion into new markets could certainly be a future consideration,” Mixon said in statement to HME News, when asked if the company’s model could be replicated in other countries.

Since 2016, NSM has been owned by Court Square Capital Partners. Before that, it was owned by Wellspring Capital Management.

Cinven conducted a detailed evaluation and assessment over a long period of time to understand the complex rehab market’s dynamics, the players, the end users and the payers, according to the statement.

“They have been interested in our industry for many years,” Mixon said.

Cinven likes what it sees—in the CRT market and NSM. The firm believes there are significant opportunities in the market for three reasons, according to the statement: There is a growing population for the company’s products and services; there is a significant opportunity to further educate underserved populations to help them obtain mobility solutions; and there are further consolidation opportunities, given the highly fragmented market.

Cinven, which says it invests in companies with a “strong growth trajectory,” will support expanding not only NSM’s complex rehab business but also its home access business, both organically and through strategic acquisitions, according to the statement.

“Cinven has a proven track record of investing in and working with healthcare companies to expand their businesses,” Mixon said. “With their support, we will be able to continue our trajectory of growth.”

As for having three PE owners since 2012—it’s not a big deal, Mixon says.

“We’ve been fortunate that each of our owners has recognized the strength of the management team we have in place so, while our ownership may have changed, it has not affected either our daily business nor our commitment to serving clients,” he said.