Drive Medical: Financed and ready
PORT WASHINGTON, N.Y. – A recently announced $115 million loan from GE Capital, Healthcare Financial Services, puts Drive Medical in a position to make “game-changing acquisitions,” says Doug Francis, principal and co-founder.
“We have representation in just about every product category, but this will catapult us into product categories that we’re not perceived to be the strongest in today,” he said. “We recognize the need to offer a deeper product mix, so providers can consolidate their purchases. This allows us to put energy behind that.”
Drive has already made one acquisition this year: Mason Medical in April. Mason manufactures pressure prevention products, including alternative pressure and lateral rotation air mattresses, and gel overlays.
Drive will also use the loan to refinance existing debt.
“It’s a combination of the interest rates are low, so it’s a good opportunity to refinance, and it gives us the dry powder to do some things we’ve wanted to do,” said Richard Kolodny, president.
While Drive officials were limited in what they could say about any acquisitions, they pointed out they’re not necessarily limited to small or mid-sized deals. GE will increase the loan to $165 million under certain conditions.
“It’s expandable,” Kolodny said.
Drive officials say they’ve found a receptive audience of manufacturers looking to sell.
“It’s competitive bidding,” Francis said. “Manufacturers are in the same position as providers, in terms of trying to achieve critical mass. It’s all about getting big fast and some don’t think they’ll be able to get big quick enough.”