trending Market Intelligence /marketintelligence/en/news-insights/trending/j_wuypy-ol3thlm6in3v4q2 content esgSubNav
In This List

Great Elm Capital buys 2 medical device companies for $63.6M

Blog

Japan M&A By the Numbers: Q4 2023

Blog

Essential IR Insights Newsletter Fall - 2023

Case Study

A Corporation Clearly Pinpoints Activist Investor Activity

Blog

Insight Weekly: Bank mergers of equals return; energy tops S&P 500; green bond sales to rise


Great Elm Capital buys 2 medical device companies for $63.6M

Great Elm Capital Group Inc. acquired Valley Healthcare Group LLC and Northwest Medical in a $63.6 million deal to create a sleep and respiratory-focused medical equipment and services company.

Under the deal, a new entity 80.1%-owned by Great Elm Capital was formed to acquire and combine Valley Healthcare and Northwest Medical. In addition to the $63.6 million purchase price, sellers may receive up to $2.4 million in deferred payment upon achievement of increased financial targets in 2018 and 2019.

The company financed $19.7 million of the consideration through cash from its balance sheet, $31.3 million of secured debt, $5.3 million in qualified preferred stock, with the remaining $7.3 million through equity rollover from the co-founders of Valley Healthcare Group, Ron and Pam Evans, and Corbel Capital Partners, an investor in Northwest Medical.

The merged company, which will remain operating under local brand names, will distribute positive air pressure machines and supplies, sleep studies, ventilators, and oxygen equipment for patients with sleep and respiratory conditions in Arizona, Nebraska, Washington, Oregon and Alaska.

Waltham, Mass.-based Great Elm Capital is a holding company with operations in investment management, real estate and operating companies.