HKW exits GMD Distribution

Hammond, Kennedy, Whitney & Company Inc has sold GMD Distribution Inc to McKesson Corporation. No financial terms were disclosed. TM Capital Corp served as financial adviser to GMD on the transaction. GMD is a provider of specialty ophthalmic drugs to clinics across Canada.

PRESS RELEASE

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.