ACON completes IWP acquisition from Audax and Parthenon Capital

ACON has closed its buy of Injured Workers Pharmacy, a specialty home delivery pharmacy. The sellers were Audax Group and Parthenon Capital Partners. No financial terms were disclosed. Joining ACON on the transaction were Triton Pacific as well as Patrick Keefe and Tracy Finn, two former Omnicare senior executives. Ken Martino, president and CEO of IWP, will continue to lead the company. Citizens Bank provided the debt financing for the deal while Jefferies served as financial adviser to IWP.

PRESS RELEASE

WASHINGTON, July 23, 2014 /PRNewswire/ — ACON Equity Partners III, L.P., a private equity investment fund affiliated with ACON Investments, L.L.C. (“ACON”) announced it has completed the purchase of Injured Workers Pharmacy, L.L.C. (“IWP” or the “Company”), from Audax Group and Parthenon Capital Partners. IWP is a leading specialty pharmacy serving patients in the $8 billion Workers’ Compensation, Automobile Personal Injury Protection and Personal Injury pharmacy markets in the United States.

As part of this transaction, ACON partnered with Patrick Keefe and Tracy Finn, two former senior executives of Omnicare, Inc., a Fortune 500 company that is a provider of long-term care and specialty pharmacy services. Also joining ACON in the transaction is Triton Pacific Capital Partners, LLC (“Triton Pacific”), an experienced private equity healthcare services investor. The Company will continue to be led by President and CEO Ken Martino and other members of the existing senior management team, who will be meaningful equity partners going forward.

“We are excited to partner with the management of IWP as well as with Pat and Tracy to build value in a business that is very well positioned for continued growth,” said Daniel Jinich, Managing Partner of ACON. “IWP has developed a patient care advocacy program that results in demonstrated savings as injured workers experience better recovery outcomes and return to work faster. Patients, physicians, attorneys and payers see value in IWP’s pharmacy model, and we see continued opportunity to grow through geographic market expansion as well as further penetration into the auto and personal injury claim markets,” added Jinich.

Ken Martino commented, “The entire management team is excited about our partnership with ACON, Triton Pacific, Pat and Tracy. Under this new ownership, IWP will continue to thrive as a patient advocate for injured workers in a complex and evolving environment that requires specialized solutions tailored to the unique characteristics of the workers’ compensation marketplace. On behalf of our entire team, I’d like to thank Parthenon Capital Partners and Audax Group for their support over the last few years. We’re very proud of the company we’ve built together and I look forward to continuing to build on this momentum with our new sponsors.”

Debt financing for the acquisition is being provided by Citizens Bank, N.A. through syndicated credit facilities. Hogan Lovells US LLP acted as legal adviser to ACON and Kirkland & Ellis LLP acted as legal adviser to the sellers. Jefferies LLC acted as exclusive financial adviser to IWP in the transaction.

Terms of the transaction were not disclosed.

About IWP
IWP is a specialty home delivery pharmacy serving patients injured in accidents covered by Property Casualty insurance. Fully licensed in 48 states, IWP enhances patient access and alleviates administrative and financial burdens by shipping medications directly to the patient and managing complex reimbursement processes. Through its state-of-the-art facilities located in Andover, Massachusetts and Phoenix, Arizona, IWP offers a full range of therapeutic options to ease pain and discomfort caused by injury, and meets each patient’s individual needs through a dedicated team of pharmacists. In addition, IWP serves as a powerful resource to those who represent injured individuals. IWP serves attorneys and physicians by minimizing their staff’s time and expense spent on medication and reimbursement issues. For more information on the company, please visit www.IWPharmacy.com.

About ACON Investments
ACON Investments, L.L.C. is a Washington, DC-based international private equity investment firm that manages private equity funds and special purpose partnerships that make investments in the United States and Latin America. Founded in 1996, ACON and its principals have managed over $3.5 billion of capital. ACON has professionals in Washington, DC, Los Angeles, Mexico City, São Paulo, Rio de Janeiro and Bogotà. For more information, visit www.aconinvestments.com.

About Triton Pacific
Triton Pacific Capital Partners, LLC, founded in 2001, is a private equity firm that invests in middle-market companies in high growth or rapidly changing industries. Headquartered in Los Angeles, California, Triton Pacific currently manages four private equity funds and is the sponsor of Triton Pacific Investment Corporation, a non-traded public Business Development Company. For more information, visit www.tritonpacific.com.

 

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