Carlyle Group agreed to buy WellDyneRx Inc. Financial terms weren’t announced. Lakeland, Florida-based WelllDyneRx, a pharmacy benefit manager, has a network of retail providers in addition to a mail order and specialty drug pharmacy. WellDyneRx has been expected to sell for $1 billion, according to press reports. J.P. Morgan Securities LLC served as financial advisor and GrayRobinson and Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to WellDyneRx, Inc. Latham & Watkins provided legal advice to Carlyle.
New York, NY – WellDyneRx, Inc. and The Carlyle Group (Nasdaq: CG) announced today that The Carlyle Group has entered into a definitive agreement to acquire WellDyneRx, Inc., a privately-held U.S.-based pharmacy benefit manager (PBM) providing full-service prescription drug management between patients and drug plans through a network of retail providers in addition to a mail order and specialty drug pharmacy. Major customers include small and mid-sized self-insured employers, unions, municipalities and providers. The transaction is subject to customary regulatory approvals and is expected to close before the end of 2016. Financial terms were not disclosed.
“WellDyneRx, Inc. has enjoyed remarkable growth over the past few years as the company has transitioned from a niche player to a full-service PBM. Carlyle provides the perfect combination of strategic and financial support to enable us to strengthen our commitment to our existing customers while pursuing greater scale in our operations. We see tremendous opportunity to continue the company’s momentum to grow into a leading national PBM,” said Zachary Johnson, President of WellDyneRx, Inc.
Stephen H. Wise, Managing Director and Head of Global Healthcare for The Carlyle Group, said, “We strive as a firm to invest in companies that improve accessibility and affordability of healthcare. We are pleased to partner with WellDyneRx, Inc., a company that has distinguished itself among peers by consistently seeking innovative ways to offer the highest quality member service while delivering cost savings to self-insured plans. We look forward to working closely with this exceptional management team to accelerate growth and realize their vision for creating sustainable change in healthcare for their customers.”
The acquisition occurs during a time in which PBMs occupy an increasingly critical role in the healthcare landscape to negotiate on behalf of employers and insurers who are contending with ballooning healthcare costs. WellDyneRx, Inc. is well-positioned to deliver value in this environment given its deep focus on meeting key customer needs through a high-touch customer service model, discipline in clinical and utilization management, and benefit customization.
Equity for the transaction will come from Carlyle Partners VI, a $13 billion fund that focuses on buyout transactions in the U.S.
J.P. Morgan Securities LLC served as financial advisor and GrayRobinson and Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to WellDyneRx, Inc. Latham & Watkins served as legal advisor to Carlyle.
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About WellDyneRx, Inc.
WellDyneRx, Inc. is an innovative, full-service pharmacy benefit manager. WellDyne excels at developing innovative and integrated health care solutions that enhance value for employers, health plans and members. The company’s unique approach to plan management enables it to provide its clients with the strategic business advantages they require to excel in today’s dynamic health care environment. WellDyneRx, Inc. takes an active interest in understanding clients’ and members’ health care goals, anticipating their needs and exceeding their expectations. WellDyneRx, Inc. serves approximately 1 million lives primarily in the self-insured private employers, unions, municipalities, and providers across the United States.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $176 billion of assets under management across 127 funds and 164 fund of funds vehicles as of June 30, 2016. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,650 people in 35 offices across six continents.