Drive DeVilbiss secures ‘additional runway’

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Friday, September 20, 2019

PORT WASHINGTON, N.Y. – Drive DeVilbiss Healthcare has agreed in principle to receive $35 million in new capital, together with a reduction in cash debt service obligations from its current lenders.

The transaction has broad support from the substantial majority of Drive’s first and second lien lenders, and includes new capital from its primary equity holders, according to a press release.

“We are pleased with the strong demonstration of support that our stakeholders have shown to our business and strategic vision,” said Bob Gilligan, CEO. “The new capital and associated capital structure enhancements will enable Drive to continue to invest in improving our infrastructure to deliver high quality service to our customers, while also providing additional runway to execute on our business plan supporting continued growth.”

The Wall Street Journal reported on Sept. 4 that Medical Depot, which operates Drive DeVilbiss, had begun restructuring talks with its senior lenders on $600 million in debt.

Drive DeVilbiss has been owned by Clayton, Dubilier & Rice, a New York-based private equity firm, for the past three years.