OJ Medtech/Charm Medical Acquire PRO2 Oxygen & CPAP Supply


OJ Medtech/Charm Medical Supply announced the acquisition of PRO2 LLC, a professional oxygen and CPAP supply company. PRO2 operates out of two locations in the Buffalo, New York area and currently serves over 10,000 patients annually with rental equipment and related medical supplies. An aging population and the continued increases in diagnosed sleep disorders continue to create strong demand for PRO2’s home medical products and services. Clinicians and insurers are increasingly supportive of home care services which patients prefer and are much more cost efficient than similar treatments in the hospital setting. The COVID19 pandemic also fundamentally changed how health care is delivered, with additional treatments shifting to patients’ homes for respiratory therapy and support.

The acquisition brings an expansion of product offerings to OJ Medtech / Charm Medical. “We admire PRO2’s clinical focus and market presence in the respiratory services and sleep therapy sectors in Western NY. We found strong synergies with our existing service model of connecting patients, physicians, and payors.” commented Peter Tallas, President and CEO of OJ Medtech / Charm Medical Supply. “We see the product line expansion into the respiratory and sleep services sector as a key growth initiative in the years ahead.”

“With our 20 year history at Charm Medical and thousands of patients on service, we have the infrastructure to integrate these businesses as we grow and broaden the scope of product offerings and geographic expansion opportunities. ” remarked Tallas.

Upstream Capital, OJ Medtech’s equity sponsor, partnered with Midwest Mezzanine Funds and Eagle Private Capital on the investment to assist with the acquisition of PRO2 LLC.

Paragon Ventures initiated this transaction and acted as the exclusive advisor to PRO2 LLC. The sale process was led by Tony Marsallo, Paragon Ventures’ Managing Director. “The acquisition of PRO2 by OJ Medtech/Charm Medical emphasizes the increasing voracity and strength of strategic acquisitions for HME companies. Pro2 has grown consistently through its local market sales efforts and creating operating efficiencies to drive revenues and profits over the past few years.” remarked Marsallo. “Even during the current global pandemic all of the parties worked together to make the transaction a success. Together everyone showed great resolve and persistence to get this transaction across the goal line." said Jonathan Sadock, Paragon Ventures’ Managing Partner.

About OJ Medtech / Charm Medical Supply

Headquartered in Pembroke, MA, OJ Charm is a medical products company that provides a broad range of recurring need items such as compression garments, wound care supplies, incontinence products and nutritional products to customers throughout New England and New York. These prescription-based, consumable products are delivered to the homes of patients with chronic conditions and are key components to the patients’ overall care plan.

About PRO2 LLC

PRO2 is a clinically oriented provider of home respiratory services, sleep therapy and related medical equipment and supplies. Founded in 2002, PRO2 has grown over the years into one of the largest HME providers in its region. The Company has always focused on strong customer service with the mandate to provide exceptional care for its patients.

About Upstream Capital

Upstream Capital invests in established, profitable companies that are at an inflection point for growth. We pride ourselves on being flexible capital for business owners seeking liquidity along with creative, committed partners for owner-operators looking to execute on a growth strategy. The majority of our current investments are in well-established, healthcare companies with strategic initiatives and strong growth trajectories.

About Paragon Ventures

Paragon Ventures is one of the nation’s leading specialists in the merger, acquisition, and divestiture of private mid-market healthcare companies. Since 1994, Paragon has successfully closed over 275 transactions and advised thousands of healthcare businesses on business valuations, sales and strategic M&A opportunities. 

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