AZ-MediQuip doubles down on retail

PHOENIX – Provider Mark Nicotera says after receiving multiple offers for AZ-MediQuip over the past few years, the time was right to seek outside investment to fuel his retail business.

The retail-focused company recently announced it had received funding from Gemini Investors, a private equity firm. It’s a change of pace from other recent deals in the HME industry – including AdaptHealth’s acquisition of AeroCare – which have centered on companies with a respiratory focus. 

“Gemini has experience with various types of retail and brick-and-mortar companies, so that they are definitely a believer that retail isn’t dead,” said Nicotera, who will remain CEO of the company. “Yes, Amazon has grown, but specialty retail is healthy, particularly if you have products people want to buy. There’s a range of products where we can easily compete with online sellers.” 

The retail-focused company, with four locations, grew faster than Nicotera expected when he first opened in 2011. A big part of that success: not receiving any bids in 2014. 

“We were already doing more retail than insurance at the time,” he said. “We really just were reacting to customer demand and maybe I was just more in tune with it, having more of a retail background, not DME.” 

In the short term, Nicotera is excited to begin growing AZ-MediQuip, opening new locations in both Arizona and other states. 

“We believe in our model and that we have a demonstrable method of adding stores that become self-supporting,” he said. “There’s always challenges, but if we can get customers in the door, we can win their business.”