Stout announced today that its client, SG Homecare, Inc. (“SG” or the “Company”), has been acquired by Sverica Capital, a Boston-based private equity firm specializing in acquiring founder-owned businesses in the lower middle market. Stout served as exclusive financial advisor to SG in connection with this transaction.

Founded in 2001 and headquartered in Costa Mesa, CA, SG is a leading supplier of durable medical equipment (DME) and single-use medical supplies to the home care market in California. The Company serves members of many of the leading health insurance plans and health networks and is well positioned to partner with its customers to capitalize on the DME industry shift to risk-sharing payment models that better manage utilization of medical equipment. DME and Home Healthcare suppliers are experiencing favorable tailwinds as hospitals discharge patients to the home earlier in the continuum of care to save on costs and improve outcomes.

“Stout did a great job for us and identified an ideal partner to take our business through our next phase of growth. Their deep knowledge of our business and industry allowed them to effectively position and articulate our growth story to prospective buyers, and we are grateful for the opportunity to partner with Gregg Osenkowski and his team at Sverica,” said Randy Rowley, Founder and CEO of SG Homecare”

“Randy and the SG Homecare team, including Charles Lee, Nancy Nittler, and Alexandria Hren, have consistently grown the business and payer relationships by providing an impressive level of customer service and contracting solutions, a comprehensive product and service offering, and flexibility in growing with their partners geographically as their membership increases in new territories,” said John Calcagnini, Managing Director and Head of Healthcare Investment Banking at Stout, who led the deal team.

Stout’s Michael Brocious, Aaron Perez, and Nick Darlington assisted in executing the deal.

Jeffer Mangels Butler and Mitchell LLP served as legal counsel to SG Homecare. McGuire Woods served as legal counsel to Sverica Capital.

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