Riverside Company-backed SMS bolts on Future Medical


The Riverside Company has bought Future Medical, a provider of rental respiratory equipment, liquid oxygen and related services, which will be added to the global mid-market private equity firm’s platform company Specialized Medical Services (SMS).

Financial terms of the deal were not disclosed.

Milwaukee, US-based Future Medical, which provides equipment and services to nursing facilities in 13 Midwestern and Southeast states, will be added to SMS, which merged with RCS Oxygen in March.

The acquisition of Future Medical expands upon SMS’s position as the largest provider of respiratory equipment, oxygen and related products and services to nursing homes and hospices in the US.

“This acquisition adds an excellent customer base and outstanding facilities,” said Riverside managing partner Loren Schlachet.

“Future Medical allows SMS to seamlessly enter some new markets while strengthening its already impressive national position.”

Based in Waterford, Michigan, Future Medical has been providing its customers with a range of respiratory-related services since 1998.

SMS and Future Medical have a strong historical relationship, as the companies worked together to service certain customer accounts, Riverside said.

Riverside principal Jack Nestor added, “SMS now offers services in more than 40 states for approximately 2,000 facilities.

“Customers are increasingly turning to larger providers like SMS because of its ability to provide comprehensive services that combine standard oxygen and equipment needs with superior clinical support.”

PNC and Medley Capital provided financing for the transaction and Deloitte & Touche advised Riverside on financial due diligence.

Copyright © 2012 AltAssets