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Riverside’s SMS Business Looks to the Future September 21, 2012

Addition of Distributor Bolsters Respiratory & Oxygen Supplier SMS

The Riverside Company has acquired Future Medical, a provider of rental respiratory equipment, liquid oxygen and related services to skilled nursing facilities in 13 Midwestern and Southeast states. The acquisition is an add-on to platform company Specialized Medical Services, Inc. (SMS), which merged with RCS Oxygen in March 2012.

The acquisition of Future Medical expands upon SMS’s position as the largest provider of respiratory equipment, oxygen and related products and services to nursing homes and hospices throughout the U.S.

“This acquisition adds an excellent customer base and outstanding facilities,” said Riverside Managing Partner Loren Schlachet. “Future Medical allows SMS to seamlessly enter some new markets while strengthening its already impressive national position.”

Based in Waterford, Michigan, Future Medical has been providing its customers with a range of respiratory-related services since 1998. SMS and Future Medical have a strong historical relationship, as the companies worked together to service certain customer accounts.

Riverside Principal Jack Nestor said the deal will benefit customers of Milwaukee-based SMS.

“SMS now offers services in more than 40 states for approximately 2,000 facilities,” said Nestor. “Customers are increasingly turning to larger providers like SMS because of its ability to provide comprehensive services that combine standard oxygen and equipment needs with superior clinical support.”

Working with Schlachet and Nestor on the transaction for Riverside were Operating Partner Dave Logan, Assistant Vice President Dan Haynes, Associate Grady McConnell, and Finance Director Dave Pecore.

PNC and Medley Capital provided financing for the transaction, Jones Day was Riverside’s legal counsel, and Deloitte & Touche advised Riverside on financial due diligence.

The Riverside Company
The Riverside Company is a global private equity firm focused on acquiring growing businesses valued at up to $200 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 295 transactions. The firm’s international portfolio includes more than 70 companies, and it has $3.2 billion/€2.5 billion in assets under management.

Specialized Medical Services
Specialized Medical Services provides respiratory equipment, oxygen and related products and services to nursing homes and hospices throughout the U.S. The company’s client base covers more than 40 states and 2,000 facilities, including 12 of the 20 largest nursing home chains in the country. Specialized Medical Services offers the best systems and the broadest array of services in the industry, including respiratory equipment, comprehensive oxygen services, disposable supplies, along with clinical, billing and consulting services.

Media Contact

Holly Mueller
Communications Consultant
The Riverside Company
+1 216 535 2236