Palladium Equity Partners to acquire DME Express

NEW YORK and THE WOODLANDS, Texas – Palladium Equity Partners has announced an agreement to acquire a majority equity interest in DME Express, a provider of durable medical equipment (DME) serving hospice providers across the U.S., from WayPoint Capital Partners, which will maintain a minority equity interest.

Palladium, which has more than $3 billion in assets under management, expects to partner with CEO Mark Borneleit and his founding team to continue to lead the business.

"DME Express represents an exciting opportunity to partner with an experienced founder-led management team in a specialized health care services segment that benefits from demographic tailwinds," said Rafa Ortiz, head of services at Palladium.

DME Express currently serves hospices and patients in nine states through a network of more than 70 warehouse locations. It offers a broad range of products, including beds and respiratory and mobility equipment, delivered under recurring per-patient-day contractual agreements.

DME Express would be Palladium’s second investment in the hospice industry and the second platform investment by Palladium Equity Partners VI, LP.

"Their prior experience in the hospice industry and working with founders seeking to scale their businesses makes them a strong partner to achieve our next phase of growth,” said Borneleit, founder and CEO of DME Express. “We look forward to collaborating together after the closing to expand our geographic footprint, enhance our service capabilities, and pursue strategic acquisitions to better serve hospice providers and the patients they support."

Cain Brothers, a division of KeyBanc Capital Markets and Holland & Knight served as financial and legal advisors, respectively, to DME Express. Edgemont Partners and Morrison & Foerster served as financial and legal advisors, respectively, to Palladium.

Terms of the investment were not disclosed.