Drive Medical signals aggressive growth strategy with Compass acquisition 

PORT WASHINGTON, N.Y. - With its recently announced acquisition of Compass Health Brands, Drive Medical is “just getting warmed up” under its new ownership, says CEO Derek Lampert. 

Kingswood Capital Management, a Los Angeles-based private equity firm, announced in October that it had signed a definitive agreement to buy Drive Medical from Clayton, Dubilier and Rice (CD&R).   

Just three months later, Drive Medical announced it signed a definitive agreement to acquire Compass Health Brands, a supplier of branded and private-label consumer medical products, including ProBasics, Carex and TheraMed.   

“Going forward with Kingswood, you will see a chapter of hyper-focused growth – both organic and inorganic,” Lampert said. “Kingswood has given us a very different capital structure, and we are already taking full advantage of that with the immediate acquisition of Compass, and we are just getting warmed up.” 

While Drive Medical has recently completed smaller acquisitions – including the product line of De Oro Devices and the full portfolio of Mobility Designed – the Compass Health Brands transaction marks its largest deal ever. In all, Drive Medical has completed more than 30 acquisitions in its 26-year history. 

Building depth and breadth across Drive Medical’s product portfolio 

According to Lampert, Compass Health Brands brings two major enhancements to Drive Medical’s portfolio: deeper offerings within existing product categories and expansion into adjacent categories, including therapy and pain management products such as transcutaneous electrical nerve stimulation (TENS) units. 

“These products are exciting because they not only provide more items we can sell to our existing customers, but they also expand us into new retailers and chiropractic and therapy centers,” he said. 

Respiratory remains a key growth driver 

Respiratory products will continue to be a central growth focus following the acquisition. Both Drive Medical and Compass Health Brands maintain respiratory portfolios, creating opportunities for portfolio optimization and expansion. 

To further strengthen its strategy, Drive Medical recently hired Frank Lazzaro as vice president of respiratory to shape the company’s long-term strategy across oxygen and sleep therapy. 

“(Lazzaro) will be taking a hard look at the Compass CPAP offering in conjunction with many other options to diversify our portfolio,” Lampert said. 

Diversification guides future M&A strategy 

Diversification will remain the guiding principle for Drive Medical’s future mergers and acquisitions, Lampert said. While demand for the company’s products remains strong, the ways in which consumers access those products are changing. 

With a growing family of brands, Drive Medical aims to be a destination for customers regardless of product type or distribution channel. 

“We are looking at other M&A opportunities that are not only material in size but bolster and diversify both our portfolio and channels,” he said. “We like acquisitions that strengthen the company for the future and allow us to provide more value to our customers.” 

Building the foundation for growth 

Lampert credited Drive Medical’s previous ownership with helping to lay the groundwork for its current expansion. In the wake of the COVID-19 pandemic, the company invested heavily in talent, particularly in operational areas such as supply chain and sourcing. 

Those teams were resourced to implement new processes and systems designed to make Drive Medical easier to do business with, he said. 

“Every KPI in the organization is meticulously created, measured, and managed to improve the customer experience,” Lampert said. “Our customers need the right products in the right place at the right time, and they deserve the most valuable and reliable partner possible. We challenge ourselves each and every day to ratchet up our ability to deliver on this initiative.”