The CD&R-backed company has received preliminary bids and is aiming for a valuation of about 10x-12x EBITDA, sources said.

Its LTM EBITDA is in the $130m-$140m range, against roughly $650m of net first lien debt, $300m of preferred equity and common equity, sources said. Recently, Drive completed a deal in which more than 95% of its first lien debtholders agreed to extend maturity by a year through 1 June 2026, according to Moody’s note on 21 June.

Drive also went through an out-of-court restructuring in 2019, in which sponsor C&DR injected $35m in fresh cash and existing first and second lien lenders agreed to push out debt maturities.

Based in New York, Drive manufactures and distributes medical equipments including wheelchairs, walkers and respiratory products. Demand for the company’s respiratory units grew during the pandemic and helped boost its performance, one of the sources said.

As of 31 March, Drive’s revenues reached roughly $949m, Moody’s said. Quotes on the company’s first lien loanrose to around 98.5 cents on the dollar, from 79.5 at the beginning of the year, according to 9fin data.

The company is compared to Medline, though the latter has a bigger scale and is more diversified, sources said.

Drive has used M&A to expand its product lines and geographic reach, including the acquisition of respiratory and sleep products manufacturer DeVilbiss Healthcare in 2015.

A representative at Drive didn’t respond to request for comment, while CD&R declined to comment.

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