Kreisers, headquartered in Sioux Falls, South Dakota; MMS – A Medical Supply Company, headquartered in Earth City, Missouri and Seneca Medical, headquartered in Tiffin, Ohio jointly announced today that they have entered into a definitive merger agreement to form Concordance Healthcare Solutions.
The transaction is subject to approval by the companies’ shareholders and is expected to close in the first quarter of 2016.
The combination will bring together three strong, growing and respected regional medical supply distributors. Concordance will have approximately 1,000 employees, 19 distribution centers and $1.1 billion in annual sales.
MMS’s Executive Vice President, Tom Harris, and Seneca’s CEO, Roger Benz will serve as Co-Presidents of Concordance Healthcare Solutions. Serving on the Senior Advisory Board will be Dave Larson, CEO of Kreisers, Gary Reeve, CEO of MMS and William Schultz, Founder of Seneca.
"This is a great day, one that could not have happened without the hard work and dedication of all our employees. By mirroring the change in our industry, the combined company will now be better positioned to compete more effectively and profitably in the evolving healthcare market. We will be able to offer a larger array of services and products, be more competitive in the marketplace and have a much larger national presence," said Tom Harris, Executive Vice President of MMS.
"It is easy to see the merit of this combination by recognizing not only ‘what it is’ but also by ‘what it is not’. It is not an acquisition. It is a merger. Three equally dedicated independent distributors, possessing like cultures and business approaches, sharing and improving as a combined entity.
This is not a transaction that results in a loser being cannibalized and incorporated into a winner. It is about furthering the development of a customer-focused, agile, near national, independent distributor the likes of which the healthcare industry has not enjoyed for decades," said Seneca CEO Roger Benz.
"If I was planning to merge Kreisers with a couple of established, superior regional distributors, Seneca and MMS would surely top the list. Kreisers’ dedication to servicing customers in our geographic area has taken a giant step forward. The synergy of combined operations run by an existing group of experienced employees will produce a win for the industry. A new alternative, long overdue, has now begun," said Dave Larson, Owner/CEO of Kreisers.
Harris also added, "The word concordance, meaning in agreement, in harmony and being of one mind could not be a more fitting name for this exciting new venture."