At least three more acquisitions expected to close by year-end
Houston, Texas – October 5, 2006 – MedServe, Inc. has completed another round of capitalization to fund the company’s continued consolidation of local and regional operators in the medical waste industry nationwide. With an investment commitment of $50 million from Avista Capital Partners, combined with an additional $20 million in existing shareholder commitments and debt conversion, MedServe management believes it has sufficient equity funding to achieve its goal of more than $150 million in annual revenues. At least three transactions are expected to close by year-end 2006 with several more planned for 2007.
Avista Capital Partners joins Chrysalis Ventures II, L.P., Murphree Venture Partners VI, L.P., Cogene Biotech Ventures II, L.P. and Erasmus Louisiana Growth Fund, L.P. in capitalizing MedServe’s aggressive expansion plans.
MedServe’s management has completed eight acquisitions over the past 18 months in its quest to become the second largest company in the medical waste management sector. These acquisitions, combined with strong organic growth, have tripled MedServe’s customer base and quadrupled revenues in the first nine months of 2006. The company is led by Roger Ramsey, former founder and chief executive officer of Allied Waste Industries and co-founder of Browning Ferris Industries (BFI) and Mike Fields, former president of BFI Medical Waste.
“The medical waste industry is very fragmented with the exception of one large, single national player. There’s a compelling opportunity for a strong second player to emerge through consolidation,” said MedServe Chairman and CEO Roger Ramsey. “MedServe already has a proven track record of successful add-on acquisitions since our formation in 2005. We appreciate the support of our investors to allow us to forge ahead to build towards a national footprint.”
MedServe, based in Houston, Texas, currently has an active public and private hospital, patient clinic, physician and laboratory customer base primarily in Texas, Oklahoma, Louisiana, Mississippi, Missouri, Kansas, Arizona and Southern California. MedServe President Mike Fields noted, “Current letters of intent should allow us to expand into at least two additional geographic markets by year end.”
MedServe Inc., with its Med-Shred, Enserv and Envirosolve subsidiaries, is headquartered in Houston, Texas. We serve hospitals and smaller-quantity medical waste generators across the Southeast, Southwest, West and Midwest, providing turnkey medical waste management solutions. These turnkey services include high quality mobile medical waste treatment services, waste liability management, waste minimization programs, sharps tracking and retrieval and medical and hazardous waste collection, transport, treatment and disposal. For additional information about our medical waste management solutions, please visit www.medserveinc.com.