Drive DeVilbiss Healthcare has issued a statement on its growth strategy amid reports that the company is being bought out by Clayton, Dubilier & Rice LLC (CD&R).
As reported by Reuters on August 10th, CD&R “is in advanced talks to acquire Drive DeVilbiss, one of the largest US wheelchair manufacturers, for about $750 million, including the assumption of debt, according to people familiar with the matter.”
Reuters reported that CD&R prevailed in an auction for Drive DeVilbiss and a deal to buy the company could happen “in the coming days,” according to sources.
Drive Devilbiss issued the following letter to customers, dated August 12, 2016:
Dear Valued Customer,
We would like to address a recent news article from Reuters that was published in various trade magazines over the past few days.
As previously announced, Drive|DeVilbiss has decided to refinance the Company’s existing credit facilities and seek additional equity capital in order to continue our growth strategy.
Since its inception in 2000, Drive has experienced dramatic growth and has completed 25 acquisitions throughout the world. In 2008, Drive partnered with Ferrer Freeman & Company, a leading private equity firm, to become a minority stockholder and provide additional growth capital to support the company’s growth strategy. Partnering with Ferrer Freeman enabled the company to continue to expand throughout Europe and North America. Ferrer Freeman has been extremely supportive of the management team and continues to be bullish on the Company’s future.
Given the Company’s position within the healthcare industry, its prospects, multiple channels of growth and acquisition strategy, the management team has decided to pursue a partnership with a larger private equity firm to replace Ferrer Freeman and provide the Company with significant capital to continue its growth strategy.
The change in our equity partnership will have no effect on customers, our associates or on the business, except to make the Company stronger for the future. The entire management team will continue to lead the organization and provide value to our customers. It is business as usual, and Drive DeVilbiss will continue to operate and grow according to its long?term plans and goals.
We at Drive DeVilbiss Healthcare remain committed to serving our valued customers, and we thank you for your continued partnership.