Category — Investors

Per-Gunnar Borhaug, CEO Handicare AS and Hardy Brännström President Romedic AB announce the acquisition of Romedic by Handicare.

Handicare AS acquires RoMedic AB in Sweden and strengthens its position internationally within lifting-, transfer- and positioning products for elderly and handicapped.

Handicare’s revenues are estimated at over 225 million Euros ($320 million) putting it in our top 3 European homecare companies (similar category).

Handicare which is owned by the Ferd Private Equity Fund has been selectively acquiring higher value product companies in the Homecare space, including Freelift and Movingpeople in the Netherlands.

We originally wrote about Nordic companies on the acquisition trail end 2005 “The Return Of The Homecare Vikings”.

Seems like they have done pretty well from my vantage point.

Michael N. Cannizzaro has been hired as Vice Chairman, President, and Chief Executive Officer of Sunrise Medical. He is described as an executive with significant experience in successfully leading healthcare businesses, and will also join the company’s Board of Directors. His recent experience includes six years at J.W. Childs Associates, a Boston, MA private equity firm. Prior to that he was President and Chief Executive Officer of Beltone Electronics from 1998 until June 2000 when he sold the company to GN ReSound.

This comes shortly on the heels of the announcement by Sunrise to split its business into two parts - Sunrise Mobility and Devilbiss Healthcare.

“Jim Elrod, Managing Director at Vestar Capital Partners - the major Sunrise shareholder (who took Sunrise private in 2000) and is a major equity investor in Sunrise, commented, “Success in today’s healthcare environment requires a solid understanding of underlying clinical solutions, reimbursement, competitive dynamics, and the changing patterns of distribution. We are very pleased to attract someone with Mike Cannizzaro’s experience. Mike has the ability to build upon the solid foundation that Mike Hammes developed in creating highly attractive, focused businesses from the historical operations of Sunrise Medical.””

The full release is here

“Sunrise Medical Appoints Healthcare Industry Veteran as Vice Chairman, President, and Chief Executive Officer

Michael N. Cannizzaro to Lead the Newly Separated Sunrise Mobility and DeVilbiss Healthcare Units

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Topchair is a brand new powered wheelchair (and concept) that enables its drivers to easily be able to climb and descend stairs, steps and other obstacles - all of this in addition to having similar performance to an industry leading powered wheelchair on the road or at home.

After several years of development by French scientist and engineer Hervé le Masne, and following the completion of a significant clinical study amongst a representative user group, the powered wheelchair is now ready for commercialization.

In addition to its speed, maneuverability and performance on the ground, the Topchair automatically detects the first step while driving with infrared sensors and then goes on to detect the last step as it retracts its built in climbing mechanism.

In this video the driving performance and step climbing mechanism is shown:

Owner and inventor Hervé le Masne goes on to demonstrate the impressive mobility potential of the chair as he heads down the stairs at Trocadero in Paris, France on the way to the Eiffel tower.

Additional detailed information is available at the Topchair website in English or French.

Topchair has passed all the regulatory certifications in France and is available for sale to local consumers.

It will soon be made available in several other countries through the development of key partnerships.

Interested parties should contact Frank Barlin or Topchair for further information.

Invacare, struggling, like several of its competitors with reimbursement, Asian sourcing pressure and cost issues has just announced that it has appointed General James L. Jones, United States Marine Corps (ret.) to its board. General Jones has recently retired as Supreme Allied Commander of NATO (North Atlantic Treaty Organization) and Commander of the United States European Command.

This should raise the profile of the company and perhaps the industry as it goes about restructuring and aligning with the new order healthcare environment.

Mal Mixon, CEO at Invacare, also served as an officer in the US Marines.

Press Release

NPM Capital, owned by the Fenter Van Vlissingen family has acquired Harting-Bank.

Harting Bank is a major supplier to the homecare and associated markets in the Netherlands and has recently reported revenues of 80 million Euros.

The acquisition provides considerable financial strength to this already strong player. The market is expecting a consolidation in the homecare provider industry which largely comprises companies such as Welzorg (by far the largest with revenues in the 200 million euro range) as well as R. Van Seeneus/Beenhakker, German owned Meyra, Emcart and several smaller players.

Enno Perdok, Managing Director of Harting-Bank has been reported as saying that they are on the lookout for further acquisitions now that they have the financial support.

Welzorg, themselves also having been recently acquired by Industri Capital (reported here) may well be in for a challenge to its dominant position?

Here is an update of investors voting with their pockets in the homecare industry and is a follow up to (Why) Would you invest in the homecare industry? The chart speaks for itself.

I have selected three companies - all leaders in their respective areas.

1. Invacare - Leading homecare manufacturer
2. Apria - Leading Provider
3. Respironics - Leading respiratory products manufacturer

After having had three clients call and discuss this with me in as many days I thought it was time to try to figure it all out. So this is my (un) definitive position which I hope raises the right questions and provides at least some answers. Excuse the caveats and variables in the language but then if you are in this business you will understand why.

Just to be upfront the recommendation is going to be to invest in “change”. Identify what the change will be and buy into it. Divest companies (or management) that believe “nothing much will change”. It is not a place for the faint hearted. It is certainly not business as usual. Past performance is definitely not a reliable indicator in the homecare business today - or rather tomorrow.

The used - to - be good news was that - “Overall the macro demographic picture is very good - the aging population, of which we are all a part, is rapidly growing”. Past tense.
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