CCS and MP TotalCare Merge

NEW YORK–In a move that company officials tout as creating one
of the country’s largest providers of direct-to-consumer diabetes
medical and other supplies, private equity firm Warburg Pincus has
acquired Florida-based providers CCS Medical and MP TotalCare for
approximately $630 million.

Warburg Pincus plans to merge the two companies, acquired in
separate transactions–$360 million for CCS and $270 million for MP
TotalCare–and operate them as CCS Medical.

Company officials said the merger gives CCS Medical a 180-person
sales force, which they say will continue to focus on developing
and maintaining referral relationships with physicians, diabetes
educators and other health care professionals.

CCS Medical, currently headquartered in Clearwater, Fla., with
locations in Roanoke, Va.; Pittsburg, Pa.; and Santa Anna, Calif.,
provides supplies directly to consumers with a portfolio of
diabetic supplies, insulin pumps, wound care, urologicals, ostomy,
incontinence and respiratory supplies and prescription meds.

MP TotalCare, headquartered in Tampa, Fla., has locations in
Columbus, Ohio; Atlanta and Denver and provides diabetes testing,
respiratory and other medical supplies. It also provides pharmacy
outsourcing services to retail pharmacies, insurance companies and
health care service providers.

According to Howard Deutsch, former chairman and CEO of MP
TotalCare and new executive chairman of CCS, “The continued rapid
growth of chronic conditions in the United States, especially
diabetes, coupled with demographic trends and the increasing
preference of mail-order fulfillment, make CCS Medical’s combined
scale, expertise and product breadth a powerful platform for future
growth.”

A private equity investor since 1971, Warburg Pincus currently
has $12 billion under management and an additional $8 billion
available for investment in sectors including health care,
information and communication technology, financial services,
energy, industrial, media and business services and real estate.
The company has invested approximately $1.3 billion in 41 health
care services companies including Coventry Health Care, Medical
Staffing Network, Spheris, Value Health and United HealthCare.