Drive Medical: ‘It is business as usual’
PORT WASHINGTON, N.Y. – Drive Medical has sent a letter to its customers in response to reports that private equity firm Clayton, Dubilier & Rice is close to buying the company.
Drive Medical, which currently calls private equity firm Ferrer, Freeman & Co. a minority stockholder, seeks additional equity capital to continue its growth strategy, the Aug. 12 letter states.
“Given the company’s position within the healthcare industry, its prospects, multiple channels of growth and acquisition strategy, the management team has decided to pursue a partnership with a larger private equity firm to replace Ferrer Freeman,” the letter states.
New York-based CD&R is in talks to buy Drive Medical for $750 million, Reuters reported on Aug. 10. As part of the deal, top execs at Drive Medical would join CD&R as minority investors, according to the news agency.
In its letter, Drive Medical says the change in ownership will have no effect on customers, its associates or the business in general, “except to make the company stronger for the future.”
“The entire management team will continue to lead the organization and provide value to our customers,” it states. “It is business as usual.”