• June 18, 2024
  • North America
  • Consumer/Retail, Healthcare

H.I.G. Capital Completes Acquisition of Health-E Commerce

NEW YORK – June 18, 2024 – H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with $64 billion of capital under management, is pleased to announce that one of its affiliates has completed the acquisition of Health-E Commerce (“HEC” or the “Company”), a leading e-commerce retailer of flexible spending account (FSA) and health savings account (HSA) eligible products and services. FSAs and HSAs are tax-advantaged accounts that allow employees to set aside pre-tax money to pay for eligible health expenses.

Founded in 2010, HEC offers over 2,500 FSA and HSA eligible products and services from top national brands and partners, as well as its own private label brand, Caring Mill, through its e-commerce sites FSAstore.com and HSAstore.com. HEC simplifies the purchasing experience for consumers with FSA and HSA benefits and guarantees eligibility across all categories, including over-the-counter medications, pain relief, skin and personal care, sun protection, diagnostic products, first aid, telehealth, and more.

H.I.G. is partnering with the current management team to support the Company’s continued growth. Preston Farrington, Chief Executive Officer of Health-E Commerce, commented, “We are excited to enter this new chapter with H.I.G. as we continue to enhance Health-E Commerce’s breadth of product and telehealth service offerings to better serve our customers. H.I.G.’s consumer and healthcare experience, combined with its significant resources, position us to continue executing upon our growth strategy and vision for the Company.”

“We are thrilled to partner with the Health-E Commerce management team, who has an impressive track record of building a best-in-class business while helping their customers capture the full benefit of these tax advantaged programs,” added John Harroff, Managing Director at H.I.G. Capital. “The Company is able to provide a trusted, frictionless customer experience through their close partnerships with third party plan administrators (”TPAs”). We see tremendous opportunity for continued growth and look forward to working with the team to build upon their success to-date.”

BofA Securities, Inc. acted as financial advisor, and Latham & Watkins LLP provided legal advice to H.I.G. Capital. William Blair & Company and Raymond James acted as financial advisors, and Paul Hastings LLP acted as legal counsel to the Company on the transaction.

About Health-E Commerce

Health-E Commerce is the parent brand to FSA Store and HSA Store, online stores that serve the 70+ million consumers enrolled in pre-tax health and wellness accounts. The Company also created Caring Mill™, a popular private-label line of health products through which a portion of every purchase is donated to the Children’s Health Fund. Since 2010, the Health-E Commerce brands have led the direct-to-consumer e-commerce market for exclusively pre-tax health and wellness benefits. Health-E Commerce plays an essential role in expanding product eligibility for important new categories within the list of eligible medical expenses. For more information, please visit FSAstore.com and HSAstore.com.

About H.I.G. Capital

H.I.G. Capital is a leading global alternative investment firm with $64 billion of capital under management.* Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, New York, and San Francisco in the United States, as well as international affiliate offices in Hamburg, London, Luxembourg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, São Paulo, and Dubai, H.I.G. specializes in providing both debt and equity capital to middle market companies, utilizing a flexible and operationally focused/value-added approach:

  • H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
  • H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. also manages a publicly traded BDC, WhiteHorse Finance.
  • H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
  • H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.

Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide. The Firm’s current portfolio includes more than 100 companies with combined sales in excess of $53 billion. For more information, please refer to the H.I.G. website at hig.com.

* Based on total capital raised by H.I.G. Capital and its affiliates.

John Harroff
Managing Director

Alex Thorn

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