M&A Deal Summary

KKR, Athyrium Capital Management and Walgreens Boots Alliance Acquire PharMerica

On August 2, 2017, private equity firm KKR, asset manager Athyrium Capital Management and Walgreens Boots Alliance acquired life science company PharMerica for 1.4B USD

Acquisition Highlights
  • This is KKR’s 11th, Athyrium Capital Management’s 12th and Walgreens Boots Alliance’s 3rd transaction in the Life Science sector.
  • This is KKR’s 60th, Athyrium Capital Management’s 5th and Walgreens Boots Alliance’s largest (disclosed) transaction.
  • This is KKR’s 105th, Athyrium Capital Management’s 21st and Walgreens Boots Alliance’s 20th transaction in the United States.
  • This is KKR’s 1st, Athyrium Capital Management’s 2nd and Walgreens Boots Alliance’s 1st transaction in Kentucky.

M&A Deal Summary

Date 2017-08-02
Target PharMerica
Sector Life Science
Buyer(s) KKR
Athyrium Capital Management
Walgreens Boots Alliance
Deal Type Going Private
Deal Value 1.4B USD
Advisor(s) UBS Investment Bank
BofA Securities (Financial)
Davis Polk & Wardwell (Legal)

Target

PharMerica

Louisville, Kentucky, United States
PharMerica is a provider of pharmacy services and serves the long-term care, hospital pharmacy management services, specialty home infusion, and oncology pharmacy markets. PharMerica was founded in 2006 and is based in Louisville, Kentucky.

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Buyer(S) 3

Buyer

KKR

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1976
PE ASSETS 267.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
KKR's office in Menlo Park, California.
KKR's office in Menlo Park, California.

KKR is a global investment firm founded by Jerome Kohlberg, Henry Kravis, and George Roberts. The Firm is separated into several business segments including private markets, public markets, capital markets, and other principal activities. KKR's private equity practice invests in management buyouts, take privates, corporate divestitures, industry consolidations, and partnerships with family-owned companies. KKR will invest in a broad range of industries and companies and will consider businesses throughout North America, Europe, Asia, and Australia/New Zealand. Sectors of interest include chemicals, consumer products, energy and natural resources, financial services, healthcare, industrial, media/communications, retail, and technology. In addition to its traditional principal investment activity business, KKR also invests in infrastructure assets. KKR was formed in 1976 and is based in New York, New York.


DEAL STATS #
Overall 246 of 484
Sector (Life Science) 11 of 20
Type (Going Private) 19 of 37
State (Kentucky) 1 of 1
Country (United States) 105 of 210
Year (2017) 27 of 41
Size (of disclosed) 60 of 104
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-08-02 Genesis Energy

Houston, Texas, United States

Genesis Energy is a midstream energy master limited partnership that provides a diverse portfolio of customers, operations and assets, including refinery-related plants, pipelines, storage terminals, and trucking operations. Genesis Energy was founded in 1996 and is based in Houston, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-08-07 URSA Insulation

Madrid, Spain

URSA Insulation is a provider of insulation solutions, with activity focused on mineral wool and extruded polystyrene (XPS). URSA Insulation was established in 2002 and is based in Madrid, Spain.

Sell -
Buyer

Athyrium Capital Management

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 2008
PE ASSETS 3.7B USD
Size Large
Type Sector Focused
DESCRIPTION

Athyrium Capital Management is a large asset manager focused on the healthcare sector. Athyrium invests in a wide range of financial instruments including royalties, structured credit, and equities as well as select special situations. Athyrium Capital was established in 2008 and is headquartered in New York City.


DEAL STATS #
Overall 23 of 44
Sector (Life Science) 12 of 22
Type (Going Private) 2 of 2
State (Kentucky) 2 of 2
Country (United States) 21 of 39
Year (2017) 4 of 7
Size (of disclosed) 5 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-07-31 Teladoc Health

Purchase, New York, United States

Teladoc Health is a national network of board-certified, state-licensed primary care physicians who provide telephone-based consultations 24 hours a day. Teladoc physicians diagnose routine care, and non-emergency medical problems via phone, recommend treatment, and prescribe medications when necessary. Teladoc Health was founded in 2002 and is based in Purchase, New York.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-08-16 Duly Health and Care

Downers Grove, Illinois, United States

DuPage Medical Group is an independent, multi-specialty physician group with more than 600 physicians in over 80 suburban Chicago locations. DMG is a patient-centered organization focused on improving access to convenient, quality health care using the latest technology and treatment options. DuPage Medical Group was founded in 1999 and is based in Downers Grove, Illinois.

Buy $1.5B
Buyer

Walgreens Boots Alliance

Deerfield, Illinois, United States

Category Company
Founded 1909
Sector Retail
Employees206,000
Revenue 139.1B USD (2023)
DESCRIPTION
Entrance to Walgreen's corporate headquarters in Deerfield, Illinois.
Entrance to Walgreen's corporate headquarters in Deerfield, Illinois.

Walgreens Boots Alliance is a multichannel retailer of consumer goods and services focused on health and wellness services and advice. Walgreens scope of pharmacy services includes retail, specialty, infusion, medical facility and mail service, along with online and mobile services. Walgreens Boots Alliance was founded in 1909 and is based in Deerfield, Illinois.


DEAL STATS #
Overall 22 of 24
Sector (Life Science) 3 of 3
Type (Going Private) 1 of 1
State (Kentucky) 1 of 1
Country (United States) 20 of 22
Year (2017) 1 of 1
Size (of disclosed) 1 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-07-09 Liz Earle Beauty

Ryde, United Kingdom

Liz Earle is an award-winning premium skincare range that uses naturally active ingredients and is recognized as one of the leading botanical brands in the UK. Created in 1995 and inspired by the gentle, healthy pace and rich botanical landscape of the Isle of Wight, Liz Earle naturally active products achieve radiantly healthy-looking skin for all skin types - even the most sensitive.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-07-31 Shields Health Solutions

Stoughton, Massachusetts, United States

Shields Health Solutions is a specialty pharmacy integrator and care provider, partnering with hospital leaders on every aspect of specialty pharmacy creation, growth and management. Shields provides the fastest, lowest risk model for health systems to create or grow a hospital-owned specialty pharmacy program. Shields Health Solutions was founded in 2012 and is based in Stoughton, Massachusetts.

Buy -