CCS Medical And MP TotalCare Merge

CLEARWATER, Fla., Oct. 3 /PRNewswire/ -- Warburg Pincus, the global private equity firm and a leading healthcare investor, has acquired CCS Medical for approximately $360 million and MP TotalCare for approximately $270 million in separate transactions. The newly combined company will operate under the CCS Medical name. The merger creates one of the largest and fastest growing direct-to-consumer providers of diabetes and other medical supplies in the United States.

“This transaction brings together the strength and experience of two great companies,” said David Wenstrup, a Warburg Pincus Managing Director. “Both companies have built leadership positions in their markets through a commitment to excellence in patient care and in developing strong relationships with healthcare professionals, which is clearly the most effective way to market healthcare services.”

CCS Medical’s combined sales force now includes more than 180 professionals, making it the largest in the industry. The sales force remains focused on developing and maintaining referral relationships with physicians, diabetes educators and other healthcare professionals.

CCS Medical will continue to provide the highest quality products and services to people living with chronic conditions. The company provides patients with a comprehensive portfolio of diabetic, insulin pump, wound care, urological, ostomy, incontinence and respiratory supplies, and prescription medications. The company’s broadly diversified product offering and its reimbursement expertise in the Medicare, Medicaid and commercial insurance markets position the company extremely well to serve a large and growing market of patients suffering from diabetes and other chronic conditions.

Howard Deutsch, former Chairman and CEO of MP TotalCare, and new Executive Chairman of CCS Medical commented: “The combination of these two, market- leading companies creates a unique platform that is focused on key trends in the delivery of healthcare services.” He added: “The continued rapid growth of chronic conditions in the United States, especially diabetes, coupled with demographic trends and the increasing preference of mail-order fulfillment, make CCS Medical’s combined scale, expertise and product breadth a powerful platform for future growth.”

Joe Capper, who is now CEO and President of the combined CCS Medical organization, said: “We have brought together two of the strongest management teams and most efficient operations in the industry.” He added: “Our unique ability to assist healthcare professionals as they seek to provide high quality care and a dedication to customer service will enable us to become the leading home-delivery company of diabetes and other medical supplies.”

About CCS Medical

Founded in 1994, CCS Medical has become a leading direct-to-consumer provider of medical supplies to patients suffering from chronic conditions such as diabetes and chronic obstructive pulmonary disease (“COPD”). Dedication to providing patients the best medical supplies available and unmatched customer service have earned CCS Medical a reputation for quality among healthcare professionals and patients. CCS Medical has developed strong relationships and select co-marketing agreements with many of the world’s leading medical products manufacturers. CCS Medical is headquartered in Clearwater, Fla. with other major locations in Roanoke, Va., Pittsburg, Pa. and Santa Anna, Calif. For more information on CCS Medical, please visit www.ccsmed.com.

About MP TotalCare

MP TotalCare is one of the nation’s leading specialty distributors of diabetes testing supplies, respiratory medications, urological and ostomy products and wound care supplies directly to customers throughout the United States. MP TotalCare also provides pharmacy outsourcing services to third parties, including retail pharmacies, insurance companies and healthcare service providers. MP TotalCare is a market leader in each of the product categories it serves. MP TotalCare’s mission is to improve patient outcomes and quality of life through a comprehensive range of services which include: delivery of product to customers’ homes; disease state education and counseling; a prescription regimen compliance program; and acceptance of Medicare and other governmental and third party payor assignment of benefits. MP TotalCare, founded in 1990, is headquartered in Tampa, Fla. with other major locations in Columbus, Ohio, Atlanta, Ga. and Denver, Colo. For more information on MP TotalCare, please visit www.mptotalcare.com.

About Warburg Pincus

Warburg Pincus has been a leading private equity investor since 1971. The firm currently has approximately $12 billion under management and an additional $8 billion available for investments in a range of sectors, including healthcare, information and communication technology, financial services, energy, industrial, media and business services and real estate. Warburg Pincus has invested approximately $1.3 billion in 41 Healthcare Services companies, including Coventry Health Care, Medical Staffing Network, Spheris, Value Health and United HealthCare, An experienced partner to entrepreneurs seeking to create and build durable companies with sustainable value, the firm has offices in North America, Europe and Asia and an active portfolio of more than 100 companies. For more information please visit www.warburgpincus.com.

Warburg Pincus

CONTACT: Kathleen Merrigan of The Abernathy MacGregor Group,+1-212-371-5999, for Warburg Pincus