Altamont Capital Partners said Sept. 7 that it sold Modern Healthcare Inc to The Kroger Company. Financial terms weren’t announced. Modern Healthcare, a specialty pharma platform, focuses on drug treatments for complex disease states like rheumatoid arthritis/dermatology, HIV and cystic fibrosis. Jefferies LLC served as financial advisor to Altamont and Modern along with Houlihan Lokey and William Blair. Ropes & Gray LLP served as legal counsel to Altamont and Bass Berry & Sims served as legal counsel to the Company.
Palo Alto, CA. Sept 7 – Altamont Capital Partners (Altamont) is pleased to announce that on September 2nd, Modern Healthcare, Inc. (Modern), a specialty pharmacy focused on patients with chronic illnesses, was sold to The Kroger Company, one of the largest retailers in the United States.
Altamont acquired the initial platform in July 2012, through a carve-out of the specialty pharmacy operations of Modern and the simultaneous acquisition and carve-out of the specialty pharmacy operations of A-Med Healthcare. Altamont then led subsequent acquisitions of Total Life Care Pharmacy and LegacyRx, and invested heavily in operational infrastructure. Led by CEO Dom Meffe, Modern recruited an experienced senior management team, developed a very successful national expansion program, and became the second largest independent specialty pharmacy in the U.S. In total, Modern’s revenue grew by over 5x during the investment period.
Commenting on the transaction, Altamont Managing Director, Casey Lynch, said, “It was a privilege to help build Modern alongside Dom and this outstanding management team. We think Kroger is going to be a winner in the health and wellness market, and we are excited to see what they build from this point forward.”
Modern CEO, Dom Meffe, added, “Altamont was the ideal partner for Modern over the last four years. Their resources and commitment to investing in our business were integral to our success building a leading platform in the specialty pharmacy space.”
Terms of the transaction were not disclosed. Jefferies, LLC served as financial advisor to Altamont and Modern along with Houlihan Lokey and William Blair. Ropes & Gray, LLP served as legal counsel to Altamont and Bass Berry & Sims served as legal counsel to the Company.
About Modern Healthcare
Modern Healthcare is a leading national, specialty pharmacy platform, with a unique physician preferred approach, breadth of therapy expertise and differentiated service offerings to customers. The platform focuses on drug treatments for complex disease states that require a high-touch service model, such as rheumatoid arthritis/dermatology, HIV, cystic fibrosis, transplant, hepatitis C, and infusion-based IVIG therapy.
About Altamont Capital Partners
Altamont Capital Partners is a private investment firm based in the San Francisco Bay Area with approximately $1.3 billion of capital under management. Altamont is focused on investing in middle market businesses where it can partner with leading management teams to help its portfolio companies reach their full potential. The firm’s principals have significant experience building business success stories across a range of industries, including government services, financial services, consumer/retail, industrials and healthcare.