Medical Specialties Distributors. Credit: Google Street View
New Mountain Capital, an investment firm that currently manages more than $20 billion in assets, has agreed to sell Medical Specialties Distributors to McKesson Corporation. New Mountain acquired MSD in December 2013, and its enterprise value nearly tripled during New Mountain's ownership -- driven by growth in revenue, earnings and new products, as well as strategic acquisitions.
Tom Burke, CEO of MSD, said in a statement that New Mountain has provided sufficient support and capital for it to expand rapidly across the post-acute care market.
Founded in 1982, MSD provides supply chain, biomedical services, and technology solutions to healthcare providers operating in low-cost alternate sites of care, including home infusion, long-term care, home health, and oncology providers. The company serves a customer base across 10,000 sites nationwide.
Since New Mountain's investment, MSD has continued to strengthen its leadership in the home infusion space while also significantly expanding its presence across the broader post-acute landscape, particularly within the long-term care, home health and oncology segments.
The transaction is expected to close in the first half of McKesson's 2019 fiscal year, subject to antitrust approval and other customary closing conditions.