Court Square Capital Partners has acquired The Harvard Drug Group from H.I.G. Capital for an undisclosed amount. Harvard Drug is a Livonia, Mich.-based distributor of generic pharmaceuticals, with nearly $500 million in annual sales.
H.I.G. Capital, L.L.C., a leading global private equity investment firm, today announced the successful sale of The Harvard Drug Group, LLC (“Harvard Drug”) to Court Square Capital Partners, a private equity firm based in New York, NY.
Harvard Drug, based in Livonia, Michigan, is the largest independent generics-focused pharmaceutical distributor in the United States with nearly $500 million in annual sales. Harvard Drug supplies generic and branded pharmaceuticals to over 42,000 customers which include independent, regional and national pharmacies, hospitals, long-term-care facilities, and government clients. Founded in 1967, Harvard Drug benefits from long-standing relationships with key pharmaceutical manufacturers. H.I.G. partnered with management to recapitalize the company in December 2006. Since that time, the company completed several complementary acquisitions and has grown earnings every year.
“During the past fours years with H.I.G. as our financial sponsor and partner, we have had great successes,” said Randy Friedman, Chief Executive Office of Harvard Drug. “They have been instrumental with both strategic direction and capital. Together we have grown the Company into the leading independent generic distributor that will continue to provide exceptional service and value to our customers for years to come.”
“Our partnership with Harvard Drug’s outstanding management team has been a tremendous success,” commented Lewis Schoenwetter, a Managing Director of H.I.G. Capital. “They have done an exceptional job, more than doubling EBITDA to over $50 million and building the leading company in this industry. We are confident that Harvard Drug will continue this success in the future.”
About H.I.G. Capital
H.I.G. Capital is a leading global private equity investment firm with more than $7.5 billion of equity capital under management. Based in Miami, and with offices in San Francisco, Atlanta, Boston, and New York in the U.S., as well as affiliate offices in London, Hamburg and Paris in Europe, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well-managed service or manufacturing businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding, H.I.G. has invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes companies with combined revenues in excess of $8 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
About Court Square Capital
Court Square Capital is one of the most experienced private equity firms in the industry. Since 1980, the group has invested in over 170 transactions across a wide array of sectors including: aerospace & defense, industrials, business services, technology, healthcare, media and travel. Court Square Capital currently manages over $4 billion of aggregate capital commitments and is based in New York, NY. With respect to the transaction, Wells Fargo Securities, LLC served as financial advisor to Court Square Capital Partners. For more information please refer to Court Square’s website at www.courtsquare.com.