Beecken-Backed Scrip Adds Allegro Medical.(News)

Byline: Tamika Cody

Beecken Petty O'Keefe & Company's Scrip Products Corporation has acquired Allegro Medical for an undisclosed amount.

The addition of Allegro Medical will give Scrip the opportunity to expand its product offering and web presence. The internet-based medical equipment distributor, which sells products direct to consumers and businesses within the US, is a synergistic and complementary fit to Scrip, Scrip's CEO Matt Taylor stated in the press release.

Livingstone acted as the exclusive financial advisor to Scrip and Beecken, with David Sulaski as the lead.

Scrip was formed when Beecken fused Scrip and Massage Warehouse in 2006. The specialty healthcare distribution business which serves the chiropractic, massage therapy, spa, and physical therapy industry sits within the firm's second fund. Beecken raised $325 million in committed capital for the vehicle in 2005.

Shortly after the platform was created Scrip acquired Hessco, Inc., which was a major competitor in the chiropractic market. It also ended up buying Lotus Touch / New Life Systems, a manufacturer and catalog distributor of premier massage and spa products.

Beecken did not return calls seeking addition comment.

The firm is currently investing out of its $400 million BPOC Fund III, L.P., which it raised in 2010.

Beecken typically handles recapitalizations and buyout deals. A good portion of its investments are medium-sized businesses within the healthcare services arena. The firm prefers to invest in companies with a solid management team that has identifiable competitive advantages and significant barriers-to-entry. The target's enterprise value usually varies from $40 million to $500 million.

A small fraction of the firms investments are growth-stage companies that are also in the healthcare service space as well as the medical product and information technology sectors. Most of these companies have an enterprise value between $5 million to $50 million.