Private equity firm MTS Health Investors LLC Acquisition Of Woodbury Health Products Inc

Private equity firm MTS Health Investors LLC has acquired Woodbury Health Products Inc, a distributor of incontinence and catheter-related supplies, from HealthEdge Investment Partners LLC, for an undisclosed amount.

Oceanside, NY-based Woodbury distributes more than 250 products from four centres in New York, North Carolina, Florida and Alabama. Tampa-based HealthEdge acquired Woodbury in April 2008 from founder Robert Jablonski.

Under HealthEdge’s ownership, Woodbury acquired several medical product distributors. In July 2008 it purchased Med-Zone Inc. In January 2010 it bought Continence Connection and DHP Home Delivery, and in October 2010 it acquired Wilmington Medical Supply Inc.

As part of the sale of Woodbury to MTS, MTS partner Oliver Moses, principal Alex Buzik, operating partner Peter Crowley and Peter Vitulli, CEO of DNA Diagnostics Center, another MTS portfolio company, will join Woodbury’s board. Woodbury CEO Brian Darling and the rest of the company’s senior management team will remain on board.

Marwood provided MTS a summary analysis of reimbursement and regulatory risk to Woodbury Health Products.Specifically, Marwood addressed the outlook for reimbursement under Medicare including the timing and influence of potential changes to the Competitive Bidding program. Marwood also assessed potential reimbursement trends for the Company’s products under Medicaid in two states Florida and North Carolina, where the Company is most concentrated.

Suzanne Gallagher, Director, Advisory Group, Michael Sullivan, Managing Director, Advisory Group, John Kelliher, Senior Managing Director, Marwood Group’s Washington D.C. Office, all assisted in the transaction.