MP TotalCare charges into urology market
TAMPA, Fla. - MP TotalCare, a national provider of diabetes and respiratory medications and supplies, has branched out with the recent acquisition of Medical Holdings, a supplier of direct-to-consumer urological products.
“We are very excited about the new addition,” MP TotalCare Chairman and CEO Howard Deutsch said in a press release. “It fits our strategy of pursuing platform acquisitions that will allow MP TotalCare to gain horizontal product expansion.”
There is speculation, however, that MP TotalCare found the expansion of its direct to consumer distribution more attractive than a new product line.
“What MP might be wanting to do is focus more towards direct-to-consumer with the diabetic and respiratory medicines, and if they are going to do that why not throw your urologicals in there,” said Marcus Kruk, a respiratory veteran who worked with MP TotalCare during the acquisition of his company, Express-Med, in 2002.
Kruk said he is wary of MP TotalCare’s rise and its possible affect on the independent dealer.
“It’s kind of scary news for the independent DMEs that are working with MP TotalCare,” said Kruk. “If they decide not to continue their relationships with the independent dealer than they could potential take business away from the independent dealer.”
The acquisition, by taking control of Medical Holdings’ leading role in the urological market, makes MP TotalCare one of the largest providers of diabetes testing supplies, respiratory medications and urological products to consumers nationwide. Medical Holdings also was a supplier of diabetes products and testing supplies, incontinence and ostomy products and mobility devices.
MP TotalCare will use the new line catheters, tubes and other urological accessories to aid in the treatment of patients with total or partial paralysis dies to spinal cord injuries.
A $15 million investment from American Capital Strategies helped complete the acquisition. Financial details were not disclosed.
“MP TotalCare provides a number of valuable services including home delivery of products, insurance reimbursement, patient education and prescription compliance monitoring,” American Capital Principal Brian Graff said in a press release. “In addition, American Capital is backing a strong senior management team with the specialized experience necessary to grow the company.”
Vance Wall, president of Lawrenceville, Ga.-based Medical Holdings, will join the management of MP TotalCare as an executive vice president in Tampa.
“I believe the acquisition by MP TotalCare of [Medical Holdings] will add resources to both companies and help accelerate the organic growth of the combined company.