Wheelchair providers continue private equity run
The Scooter Store has joined United Seating & Mobility (USM) and ATG Rehab as the third wheelchair provider in recent months to get a boost from a private equity firm.
The Scooter Store announced today that it has received financing from a Sun Capital Partners affiliate. Like USM and ATG, it says the financing "sets the stage for future growth and potential acquisitions."
Because demand for wheelchairs continues to rise, but insurers, including Medicare, seek to reduce costs, The Scooter Store believes low-cost, efficient providers that have scale, brand recognition, buying power and access to capital will thrive.
Here's what Doug Harrison, CEO of The Scooter Store, had to say about the financing:
"The Scooter Store is taking aggressive measures to navigate through the current headwinds and ensure that our company is positioned to take advantage of the new market dynamics. The backing provided by the Sun Capital Partners affiliate will allow us to be even more agile. We are excited to be in a position to quickly adapt to the most recent Medicare changes and pursue new strategic opportunities that arise from on-going changes."
Here's what Steven Liff, a senior managing director at Sun Capital Partners, had to say:
"We view this as a growth investment in a business that does an excellent job of working with customers to ensure they receive the right product for their medical needs with convenient in-home delivery and service. The Scooter Store is well positioned in a market whose customer base is projected to grow significantly in the coming years. We also see opportunities to expand product offerings in areas that would greatly enhance the business."
So who are USM, ATG and The Scooter Store going to buy? Is your company up for sale?