Strategic Delivery Solutions (SDS Rx), a portfolio company of HCI Equity Partners, has acquired Medical Delivery Services (MDS).
Tampa-based MDS manages the transportation of radiopharmaceuticals – pharmaceutical drugs containing radioactive isotopes that are used in diagnostic imaging and to treat disease. The company is one of only four companies in the US to have a DOT 8308 Special Permit that allows it to transport more radioactive materials than otherwise legally allowed. MDS has a network of over 250 independent contractors who travel more than 14 million miles and deliver 524,000 pieces of radioactive material per year. The company delivers nationwide with a high concentration in the Northeast and South regions of the US.
SDS Rx is a last-mile supply chain services provider that specializes in the movement of pharmaceuticals from wholesale distributors to long-term care pharmacies and from long-term care pharmacies to long-term care facilities. The company, led by CEO Drew Kronick, was founded in 2009 and is headquartered near New York City in Clark, New Jersey.
The buy of MDS gives SDS Rx entry into new geographies, builds density in the company’s existing geographies, and adds radiopharmaceuticals to its product line.
“The acquisition of MDS combines two exceptional management teams with best in class capabilities in their respective markets and represents a significant achievement in SDS’ strategy to become a dominant pure-play logistics provider to the healthcare industry,” said Doug McCormick, a managing partner with HCI.
HCI invests in industrial products and service companies that have from $20 million to $200 million in annual revenue and $5 million to $20 million in EBITDA. Sectors of interest include aerospace and defense; transportation products and services; distribution; infrastructure products and services; niche manufacturing; and industrial services. The firm, founded in 2003 and headquartered in Washington DC, is led by managing partners Dan Dickinson and Doug McCormick.
SDS Rx was acquired by HCI through its fifth fund which closed in November 2017 with $400 million of capital commitments.
Private Equity Professional | June 25, 2020
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