Private equity firm NorthEdge Capital has sold Direct Healthcare Group (DHG) in a secondary buyout by European healthcare investor ArchiMed, generating a 3x return on investment and an IRR of 39%.
DHG is a developer and manufacturer of pressure care products designed to prevent medical issues such as pressure sores. The business was founded in 2009 and works with care providers in over 20 countries throughout the world.
NorthEdge led a management buyout of Direct Healthcare Services in April 2016, renamed it Direct Healthcare Group and broadened the firm’s product range through a series of bolt-on acquisitions.
Under NorthEdge’s ownership, revenue at the business has more than doubled, with EBITDA more than tripling over the same period. The number of employees has also increased from 52 to 185.
Andrew Skinner, investment director at NorthEdge, said: “In the three and a half years since our investment, DHG’s buy-and-build strategy has turned the business into a multi-specialist organisation, innovating the way that patients are cared for across the UK.”
Graham Ewart, CEO at Direct Healthcare Group, added: “NorthEdge has been the catalyst behind the rapid growth of DHG over the past three years, providing both the funding to facilitate expansion and acquisitions, as well as ‘on-the-ground’ knowledge to add significant value. Having established ourselves as a market leader in the UK, Europe now represents an enormous opportunity to expand our horizons.”