RecoverCare and Joerns to merge in June
RecoverCare LLC will merge with Joerns Healthcare, the companies announced in April.
The merger will create “one of the leading healthcare equipment providers across the continuum of care” the companies said.
The terms of the deal were not disclosed, but it is a “merger-of-equals transaction.” It is expected to close by the end of June.
“Very few companies have the scale and differentiated offering of our combined organization and we believe this will allow us to better serve our customers,” said Mark Ludwig, president and chief executive officer of Joerns.
Joerns is controlled by Virginia investment firm Quad-C Management and is based in Charlotte, NC, with a presence in Canada and Europe. RecoverCare is controlled by Los Angeles-based Aurora Capital Group. Piper Jaffray was a strategic advisor in the transaction, Gibson Dunn & Crutcher was legal counsel to RecoverCare and White & Case was legal counsel to Joerns.
Both companies make bed systems, therapeutic support surfaces, negative pressure wound therapy products, and patient handling equipment. RecoverCare also serves the acute market, such as bariatric transfer chairs for ICU and medical-surgical units.
Joerns bought all the intellectual property for the Dolphin Fluid Immersion Simulation Mattress Systems from Biologics Inc. in 2011. It announced the sale of its furnishings business to Akin Industries in March, saying design and furnishings no longer aligned with its strategy.
RecoverCare, meanwhile, bought Maryland-based Global Medical LLC in December. CEO Mary Zappone, who took over in 2011, told Louisville Business First that the company was considering as many as a dozen new acquisitions.
“Combining our two companies' business processes and best practices will allow us to drive customer satisfaction and service levels to an even higher standard of excellence,” she said of the merger. “This is an exciting time for RecoverCare, for Joerns, and for our customers across the industry.”