HKW exits GMD Distribution with sale to McKesson Corp

U.S. private equity firm Hammond, Kennedy, Whitney & Co (HKW) has sold GMD Distribution Inc, a distributor to the Canadian pharmaceuticals industry. No financial terms were disclosed for the deal, which saw GMD sold to McKesson Corp, a U.S. pharmaceuticals distributor. Oakville, Ontario-based GMD, which specializes in supplying specialty ophthalmic pharmaceuticals to clinics, was recapitalized by HKW in early 2015. The transaction included the affiliated Ophthalmic Direct LP. During the investment period, the company acquired Adjuvantz Inc, a Canadian provider of patient support programs.

PRESS RELEASE

Hammond, Kennedy, Whitney & Company Inc Announces Sale of GMD Distribution Inc.

Indianapolis, IN – Hammond, Kennedy, Whitney & Company, Inc. (“HKW”) is pleased to announce that on April 3, 2017 it closed on the sale of GMD Distribution, Inc. (“GMD”). GMD is a leading distributor to the Canadian pharmaceutical industry and specializes in supplying specialty ophthalmic pharmaceuticals to clinics across Canada. GMD develops customized programs for a variety of clients that enable the direct distribution of pharmaceuticals and other healthcare products to Canadian pharmacies and clinics. GMD had been a portfolio company of HKW since 2015.

The buyer is McKesson Corporation (“McKesson”), based in San Francisco, California.

“We have had a great run with HKW,” said John Leombruno, CEO of GMD. “The combination of HKW’s partnership mentality, Canadian healthcare experience and unwavering support of our growth initiatives, which included an add-on acquisition, was an ideal fit for our team.”

“GMD hit on all the key criteria we seek out in a platform investment,” said Glenn Scolnik, HKW Senior Partner and former Chairman of the GMD Board. “GMD participates in a high growth industry, is a niche market leader, and possesses an exceptional management team. John Leombruno and Kabeer Baig are talented, driven executives who have a track record of success.”

“The team did an excellent job of executing on the strategy of geographic expansion and growing the patient services business. McKesson will undoubtedly bring additional resources to GMD in order to facilitate further growth,” added Mike Foisy, HKW Lead Operations Partner and GMD Board member.

About HKW – HKW is a private equity firm founded in 1903 with offices in Indianapolis and New York. Since 1982, HKW has sponsored 53 platform transactions of lower middle-market companies throughout North America, as well as 59 add-on acquisitions. For further information on HKW, please visit www.hkwinc.com.

For further information on GMD, please visit www.gmdpharma.ca.

GMD’s financial advisor was TM Capital Corp. (“TM”), an investment bank based in New York, Boston and Atlanta. Further information about TM is available at www.tmcapital.com.

Taft Stettinius & Hollister LLP (“Taft”) served as legal advisor to GMD. For further information on Taft, please visit www.taftlaw.com.

Photo courtesy of GMD PharmaSolutions