Scoop: New State Capital seeks buyer for United Medical Systems
New State Capital is exploring a sale of United Medical Systems, a provider of mobile medical equipment for urologic conditions like kidney stones and prostate cancer.
Driving the news: A Houlihan Lokey-run sale process is underway, with IOIs for the Westborough, Massachusetts-based company fielded earlier this month, sources say.
- $23 million of EBITDA is marketed for the business, they add.
How it works: UMS provides transportable in-house medical services to hospitals, ambulatory surgery centers and physician offices.
- Services include shock wave and laser lithotripsy to treat kidney and ureteral stones and MR/US fusion biopsy for the detection of prostate cancer.
- The company boasts that its mobile concept lends to various advantages, like an additional revenue stream that doesn't require major investment in equipment or personnel.
- Its flexible scheduling model and in-house set-up lends to the appearance of a full-time program within facilities, it says.
What they're saying: End-market demand for kidney stone management is large and growing, but one consideration is how private equity consolidation of urology groups impacts this model, one source says.
- That is, larger platforms may increasingly see reason to bring additional services in-house, like lithotripsy.
State of play: Consolidation in the broader urology speciality remains in its early days, though the growing list of PE participants includes:
- Triton Pacific Capita, Gauge Capital, Silver Oak Services Partners, NMS Capital, Lee Equity, Prospect Hill Growth Partners and Audax Group.
Yes, and: Perhaps the most relevant mobile medical equipment player is Healthtronics, which Altaris Capital acquired in 2014 — the same year New State entered the space.
Flashback: New State Capital in November 2014 carved out UMS from its German parent company, UMS United Medical Systems International AG.
- UMS in September 2021 named Michael Martin CEO, after the seasoned executive led Results Physiotherapy as CEO through its sale to Upstream Rehabilitation.
New State Capital and Houlihan Lokey declined to comment.