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.
