Transactions & News

The Bottom Line: NewSpring’s Investment in Spiro Health

NewSpring, a family of private equity strategies, announced today that NewSpring Mezzanine, the Firm’s dedicated mezzanine strategy, has invested in Spiro Health in partnership with Upstream Capital.

Spiro Health combines three health and respiratory care companies to create an emerging national leader

NewSpring Mezzanine has invested debt and equity to support the merger of three leading sleep health and respiratory care providers. America’s HealthCare at Home, Cape Medical Supply, and Health Complex Medical have all come together to form a new entity called Spiro Health. The three companies will continue to operate under their existing names in each of their local markets. By bringing together three leading regional providers, Spiro Health has built a framework for a national organization focused on total sleep health & wellness and respiratory care. The new entity will have operations across seven states and the District of Columbia; Connecticut, Maine, Maryland, Massachusetts, New Hampshire, Rhode Island, and Virginia. 

Spiro Health is focused on elevating the level of medical supply products and services delivered to patients in the home

Spiro Health offers a diverse set of home medical equipment (HME) and supplies that promote total sleep health and respiratory care. By leveraging new technology solutions, the company provides patients and partners with a seamless experience when ordering critical HME and supplies. Spiro Health is dedicated to reducing the pain point for referral sources and patients and making their lives easier in the path toward better health and wellness.

“We see a massive opportunity to leverage the combined operations and expertise of our three member companies to capture a larger portion of this fast-growing HME market. NewSpring’s experience growing middle-market companies makes them the perfect partner to help us unify our member companies’ operations, expand into new geographies, and improve patient experiences.”
— Gary Sheehan, President and CEO of Cape Medical Supply and newly appointed CEO of Spiro Health

Demand for home medical equipment is rising and Spiro Health is well positioned to capture this market growth

An aging population, rising obesity rates, and an increase in diagnosed sleep disorders have created a strong demand for HME that provides patients with better sleep and easier breathing. By operating in a critical place in the care continuum between the patient, physician, and insurance provider, Spiro Health is well-positioned to capture a greater share of this growing market by helping more patients receive this critical equipment. 

Proceeds from the transaction will be used to grow market share and improve patient experiences

Spiro Health plans to use the proceeds of this transaction to increase its geographical footprint and capture a greater share of this growing patient population. Additionally, proceeds will be used to continue building its best-in-class patient and referral partner experience and technology platform to facilitate growth. 

“Together, this combined entity is even greater than the sum of its parts. As the number of individuals in need of home medical equipment continues to rise, we expect Spiro Health to continue leveraging its best-in-class patient and referral partner experience and market position to reach higher levels of growth. We’re thrilled to work with Gary and the rest of the executive leadership team and we’re excited to help this new entity grow.”
— Steve Hobman, NewSpring General Partner

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