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Case Study

Centurion Service Group

Leading medical equipment liquidation and resale platform, specializing in auctions and facility liquidations.

Year of Investment

2018

Deal Type

Growth Buyout

Status

Realized (acquired by TRIMEDX in 2020)

Vertical

Healthcare Services

Location

Franklin Park, IL

Row of diagnostic ultrasound machines on wheeled carts at a medical equipment expo.

Investment Thesis

Hospital Need for Liquidity

Healthcare systems under pressure to monetize surplus equipment.

Accretive Network

Leverage 1315 Capital’s experience and network to drive hospital and OEM relationships.

Sustainability Trend

Growing focus on sustainability and recycling in healthcare.

Value Creation

Board Governance

Operating Team Member made board Chair; recruited independent board member.

Inorganic Growth

Conducted diligence on 5 acquisition opportunities, and successfully closed on 2 in the medical equipment refurbishment space.

Commercial Partner

Developed and implemented marketing plan with management, and led customer strategy workshops.

I founded Centurion Service Group in 2001 and had built it into the country’s largest medical equipment auction house. I had many investors interested in the business but ultimately chose 1315 Capital due to their healthcare expertise and their buy-in to my vision for the business. Through 1315 Capital’s investment, I was able to generate significant liquidity through a majority recapitalization and I retained a meaningful rollover stake in the business as well as staying on as CEO. Their team helped me finance and execute on 2 tuck-in acquisitions, more than doubling the size of the business in less than 3 years.

Erik Tivin

CEO of Centurion Service Group

Modern operating room with surgical table, overhead lights, and a C-arm imaging system.

120k+

Pieces of Equipment Sold per Year

$40M

Cash to Hospitals

250k

Cubic Yards Diverted from Landfills

2

Tuck-in Acquisitions Completed

Key Highlights

  • 2001: Company founded by Erik Tivin
  • 2017: Opens 4th warehouse location in Dallas, TX to distribute volume in Chicago warehouse; 1315 Capital explores proactive investment theme of cost containment
  • 2018: 1315 Capital acquires Company
  • 2019-2020: Company acquired Ganim Medical and Monet Medical
  • 2020: TRIMEDX acquires Company

Results

Centurion grew into the world’s largest medical equipment auction house and an emerging leader in refurbished medical equipment sales, sitting at the center of the used medical equipment ecosystem with a business model addressing the various needs of the market. Given the uniqueness of the asset and an industry-wide focus on cost containment, there was robust demand from acquirers that led to the Company’s acquisition by TRIMEDX.

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