Ancor and Merit Sell Carex Health Brands to Tenex Capital Management

FORT WORTH, Texas--()--Ancor Capital Partners and Merit Capital Partners are pleased to announce the sale of Carex Health Brands to Tenex Capital Management. Carex Health Brands will be merging with Roscoe Medical, another portfolio company of Tenex Capital Management. The transaction will create a combined company well-positioned to better serve the growing home healthcare market, with dominant market distribution across all channels from retail to DME and managed care, with a product portfolio that is second to none.

Ancor and Merit acquired Carex Health Brands in 2010, and led the company through three strategic acquisitions to further diversify its product line and customer base. Carex Health Brands is the market leader of branded home medical equipment sold directly to the consumer through the drug store chains, mass merchants, and grocery retailers. It serves a diversified base of blue-chip and independent retailers who have dramatically increased their shelf space dedicated to home medical products. In addition, Carex offers one of the broadest product lines in the industry including pain therapy and medication compliance aids.

"We are extremely proud of the accomplishments that Carex has made in the three years since we acquired the company,” said J. Randall Keene, Managing Director at Ancor. “During this time frame, we made acquisitions of Detach N’ Go, Uplift Technologies and Thermionics, Inc. The company also experienced organic growth by adding new customers and further penetrating existing customers. We are deeply appreciative of the management team and the partnership they embraced with Ancor and Merit.”

Carex Health Brands markets its products under the Carex, Apex, Bed Buddy© and Thera-Med brands. The company’s brands have achieved broad customer awareness in the marketplace and are used by home-care patients, the mobility challenged, senior citizens, and, in many cases, the general public.

“The chemistry we had with Ancor and Merit, coupled with their insight and commitment to capitalize external growth, enabled us to build the product and customer diversity that appealed to Roscoe Medical,” said Matt McElduff, President of Carex. “We look forward to this next stage of growth.”

About Ancor Capital Partners:

Ancor Capital Partners, based in Fort Worth, Texas, is an operations-oriented private equity firm focused on lower middle-market manufacturing and distribution companies with EBITDA of $5-$15 million. Extensive operational experience gives the Ancor team a unique understanding of the critical business issues faced by lower middle-market companies. Ancor’s proven track record includes in excess of 30 acquisitions to date in health care, food processing and other industries. http://www.ancorcapital.com

About Merit Capital Partners:

Merit Capital Partners, headquartered in Chicago, Illinois, has managed approximately $1.7 billion through five institutionally sponsored limited partnerships and is currently investing its fifth fund, Merit Mezzanine Fund V, L.P., with total commitments of $612.5 million. Merit invests both subordinated debt and equity in middle-market companies in support of recapitalizations, acquisitions, management buyouts and internal expansions. Since its inception in 1993, Merit has completed more than 70 platform investments. Carex represents Merit’s fifth investment in partnership with Ancor Capital Partners. http://www.meritcapital.com

About Roscoe Medical:

Roscoe Medical, headquartered in Strongsville, Ohio, is a major manufacturer and distributor of innovative healthcare products that promote independence and better living in the homecare setting. The company's core product lines include respiratory products, CPAP products, pain management products and durable medical equipment. Serving customers worldwide, the company is known for its superior customer service, quality products and competitive prices. http://www.roscoemedical.com

Contacts

Ancor Capital Partners
Brook M. Smith, 817-509-5242
Managing Director
bsmith@ancorcapital.com
or
Merit Capital Partners
Ben Yarbrough, 312-592-6124
Principal
byarbrough@meritcapital.com

Release Summary

After three acquisitions to build and diversify Carex Health Brands over the past three years, Ancor Capital and Merit Capital have sold Carex to Tenex Capital to merge with Roscoe Medical.

Contacts

Ancor Capital Partners
Brook M. Smith, 817-509-5242
Managing Director
bsmith@ancorcapital.com
or
Merit Capital Partners
Ben Yarbrough, 312-592-6124
Principal
byarbrough@meritcapital.com