Healthcare equity firm makes move into infusion therapy market

Water Street Healthcare Partners, a private equity firm focused exclusively on healthcare, has acquired Medical Specialties Distributors, LLC, a Massachusetts-based provider of infusion products, supplies, biomedical services, and technology solutions for the home infusion therapy market.

“Water Street is the ideal partner to help MSD advance our services and capabilities to provide greater value to our customers in this growing market,” said Jim Beck, the president and CEO of MSD, who will continue to lead the company and its management team. “I have known its partners for many years and believe they have an unmatched level of expertise building and operating specialty distribution businesses. MSD will benefit tremendously from Water Street's expertise and ideas for how we can expand our services to the growing number of infusion centers and oncology clinics that are treating patients in the home.”

MSD employs over 250 individuals in eight fulfillment and service centers, and provides a range of infusion equipment, disposable supplies, and services that include biomedical rental and maintenance, equipment management and tracking, and formulary development.

It may be a fortuitous move for Water Street, given that over $90 billion dollars will be spent on home healthcare expenditures by 2014, according to the Centers for Medicare and Medicatid Services. This includes a growing demand for intravenous therapy.

"MSD is uniquely positioned as the only national distributor that specializes in serving the needs of home infusion providers," said Rob Womsley, a partner at Water Street Healthcare Partners. "It has achieved steady growth by offering customers comprehensive solutions that support them with effectively managing and utilizing their products and supplies to ensure they meet their patients' day-to-day needs. Our intention is to build on MSD's strong foundation and technology leadership to expand its services to the increasing number of providers who are enabling people to receive drug therapy services at home."

Water Street has made twenty-five transactions of this nature, including MSD, its third investment in the medical distribution sector. The companies owned by the firm operate in specialty distribution, medical devices and other products, specialties, and others in the healthcare sector.