GTCR Partners with Management in Buyout of Coram Prescription Services
CHICAGO, June 12 /PRNewswire/ -- GTCR Golder Rauner, LLC, today announced that it has partnered with the management team of Coram Prescription Services (CPS) to acquire their business from Coram Healthcare Corporation (OTC Bulletin Board: CRHE - news) for $41.3 million. CPS is a leading national provider of specialty mail-order pharmacy services and patient management programs focusing on high-risk, high-cost conditions such as HIV/AIDS, transplant, oncology, respiratory syncytial virus, growth hormone deficiencies, hepatitis C and other conditions treated with self-administered injectable medications. CPS also provides comprehensive pharmacy benefit management services. The parties expect the transaction to close this summer, but completion of the transaction is subject to customary conditions and third party approvals. There can be no assurance that the transaction will be closed.
The business will be renamed CuraScript and will be led by CEO Dom A. Meffe Jr., currently president of CPS, and COO Don Howard, currently CPS' vice president of operations. GTCR Fund VI, LP and GTCR Capital Partners have committed a total of $65 million of equity and mezzanine debt to fund CuraScript's initial acquisition, as well as future acquisitions of related businesses.
``Dom Meffe and Don Howard have done a tremendous job with CPS, managing rapid growth in an emerging industry while providing a very high level of service to their patients,'' said Ned Jannotta, a GTCR Principal. ``We expect that CuraScript will continue to benefit from the ongoing advances in biotechnology drug development and we are very excited about the opportunities to build CuraScript aggressively.''
``We're very pleased to have an investor of GTCR's caliber join us in this management buyout,'' said Meffe. ``GTCR's insight and capital commitments will help us realize our business model's full potential. We're excited to continue to bring value to our patients, physicians, and other customers through our focus on providing the highest quality patient care.''
Daniel D. Crowley, Chairman, President and Chief Executive Officer of Coram Healthcare said, ``CPS is a good company and we will continue working closely with it in marketing and supplying certain pharmacy services related to our infusion business and our employee benefits plans.''
CuraScript will be based in Orlando, Florida. It will also have satellite pharmacies in Baltimore, Maryland; Hayward, California; Houston, Texas; Las Vegas, Nevada; and Omaha, Nebraska.
Founded in 1980, GTCR Golder Rauner, LLC, is a leading private equity investment firm and long-term strategic partner for outstanding management teams. It pioneered the investment strategy of identifying and partnering with exceptional executives to acquire companies in fragmented and growing industries. GTCR currently manages more than $4 billion in equity capital invested in a wide range of companies and industries. Its primary areas of industry focus include healthcare services, information technology services, marketing services, outsourced business services, transaction processing and logistics. More information about GTCR can be found at www.gtcr.com . |
