NEW YORK–(COMMERCIAL THREAD) – NMS Capital (“NMS”) today announced its partnership with management of the Company in connection with the recapitalization of DirectMed Parts & Service, LLC (“DirectMed” or the “Company”). Terms of the transaction were not disclosed.
Headquartered in San Diego, California, DirectMed is the largest independent source for the service and supply of medical imaging parts for MRI and CT machines. Leveraging its inventory of over 60,000 parts in over 5,000 unique SKUs, the company provides 24/7 solutions to major OEMs, such as GE, Siemens and Philips, as well as service organizations independent (ISO), imaging centers, hospital systems and parts suppliers in North America, Latin America and Europe. The company’s team of electrical engineers, physicists and technicians support customers who need an efficient and cost-effective solution to get imaging equipment back online.
As the complexity and cost of repairing and maintaining technical equipment increases and budgets remain stagnant, hospitals and healthcare providers are increasingly turning to suppliers of spare parts and equipment for support ongoing operations. The global market for third-party medical imaging equipment in 2021 is estimated at $ 4.8 billion and is expected to exceed $ 6.2 billion by 2026. It is essential that healthcare systems and imaging centers shoot part of the independent channel and maximize the useful life of capital-intensive equipment. .
“DirectMed has developed and acquired in-house repair capabilities and made physical investments in inventory and fixed assets to prepare us for our next phase of growth,” said Brad de Koning, President and CEO of DirectMed. “Working with NMS to analyze and fund acquisitions and assess opportunities for expansion into new diagnostic imaging modalities will accelerate our progress. With its in-depth knowledge of the medical imaging equipment industry, NMS provides tremendous benefits to our customers and our team.
Tanner LoRusso, Co-Founder and Vice President of Sales at DirectMed, said, “The investment from NMS will enhance DirectMed’s data-driven sales approach, inventory scope and engineering capabilities, strengthening our customer-centric commitment to high quality parts and repairs. As a co-founder of the company, it has been gratifying to see DirectMed strengthen its position in the market. I am proud to partner with NMS – a leading investor in healthcare services – to execute our next phase of expansion. ”
David Peterson, Managing Director of NMS, said: “The DirectMed leadership team has built an impressive company with a truly differentiated and unique model. NMS is delighted to partner with the DirectMed team given our shared vision to strengthen their leadership position in the parts and imaging services industry. Our investment in DirectMed is in line with NMS ‘thematic approach aimed at identifying differentiated opportunities in targeted sectors. NMS has spent several years evaluating opportunities in the medical equipment repair industry, and we were immediately impressed with DirectMed’s positioning and operating model. Their proven strategies, deep engineering expertise and highly experienced and knowledgeable management team make us confident in the future of DirectMed. We look forward to this next step for the Company.
The NMS negotiating team also included Kevin Jordan, Jonathan Spero and Jordan Shenker. Greenberg Traurig provided legal advice and TripleTree acted as financial advisor to NMS. Cypress LLP provided legal advice to DirectMed, and Madison Capital Funding provided debt financing to support the transaction.
DirectMed Parts & Service is the largest independent supplier of diagnostic imaging parts specializing in MRI and CT machines with over 60,000 parts in stock. An ISO 13485 certified company, DirectMed repairs, supports and sells GE, Siemens and Philips spare parts to healthcare networks, imaging centers and independent service organizations (“ISO”) around the world. For more information on DirectMed, please visit the firm’s website at directmedparts.com.
About NMS Capital:
NMS Capital is a New York-based private equity firm specializing in strategic equity investments and leveraged buyouts of lower middle market companies. The company was formed by the spin-out of a group of holding companies from the Merchant Banking division of Goldman Sachs. NMS focuses on companies headquartered in the United States that are poised to benefit from sustainable growth trends, with a particular focus on business and healthcare service companies. For more information on NMS, please visit the company’s website at nms-capital.com.