Harvest exits healthcare co for $245m

The New York buyout firm has agreed to sell its medical equipment platform Home Care Supply to Praxair Healthcare Services.

An investor group led by New York-based private equity firm Harvest Partners will sell its holding in Home Care Supply to publicly traded Praxair Healthcare Services for $245 million (€204 million).

Headquartered in Beaumont, Texas, Home Care Supply provides respiratory and medical equipment across 13 states. Praxair will integrate the business into its Healthcare Services unit, which provides home oxygen, respiratory medications and home medical equipment, giving the company presence in 27 states.

The deal is expected to close this month.

Harvest formed Home Care Supply in 1998 along with Davis Tuttle Venture Partners and former executives of Taylor Medical. The company served as a platform for acquisitions in the ‘highly fragmented’ healthcare supply industries. At the time of Home Care Supply’s launch, Harvest said it had expected annualized revenues of $200 million by the end of 1999, according to a firm statement. For the 2003 fiscal year, the company had only generated $169 million in revenues. In May 2001, Harvest did manage to recapitalise the Home Care Supply for $145 million.

In March, Harvest, along with Boston-based private equity co-investor Weston Presidio, announced that portfolio company AMH Holdings had completed an offering of senior discount notes, yielding approximately $258 million. AMH is the indirect parent company of Associated Materials Incorporated (AMI), a building products company that primarily makes and distributes vinyl siding and windows for residential homes.