NEW YORK & THE WOODLANDS, Texas—Palladium Equity Partners, LLC (Palladium), announced an agreement to acquire a majority equity interest in DME Express (DME Express), a provider of durable medical equipment serving hospice providers across the United States. Palladium said it expects to partner alongside CEO Mark Borneleit and his founding team who continue to lead the business. The closing of the contemplated transaction is subject to the satisfaction of certain conditions.
"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 will be Palladium's second investment in the hospice industry since inception, and the second platform investment by Palladium Equity Partners VI, LP. Palladium will acquire a majority equity interest in DME Express from WayPoint Capital Partners, which will maintain a minority equity interest in the business.
DME Express currently serves hospices and patients in nine states through a network of 70+ warehouse locations. DME Express offers a suite of products, including beds, respiratory equipment and mobility equipment, delivered under recurring per-patient-day contractual arrangements.
"I believe the company's differentiated service model, operating footprint and strong customer relationships position it well for continued growth and align with our prior investment experience in home health and hospice services," said Daniel Ilundain, president of Palladium.
"We are excited about our upcoming partnership with Palladium," said Borneleit. "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. 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."