Kinderhook Industries recapitalized Long’s Drugs Inc and PharMedQuest Pharmacy Services, which combined provides on-site and central fill pharmacy services to healthcare facilities that focus on indigent and underserved populations. The deal represents Kinderhook’s 12th healthcare services platform investment.
Kinderhook Industries, LLC (“Kinderhook”) announced today its majority recapitalization of Long’s Drugs Inc. (“Longs”) and PharMedQuest Pharmacy Services, Inc. (“PharMedQuest” and, collectively, the “Company”). The Company provides on-site and central fill pharmacy services to healthcare facilities that focus on indigent and underserved populations, including Federally Qualified Health Centers (“FQHCs”), Ryan White Clinics and STD Clinics (collectively, “Covered Entities”). The transactions represent Kinderhook’s 12th Healthcare Services platform investment and its 43rd and 44th Healthcare Services acquisitions. Financial terms of the transactions were not disclosed.
Headquartered in Columbia, South Carolina, Longs provides comprehensive pharmacy services and distributes specialty pharmaceuticals across the United States. Longs offers tailored pharmacy solutions for Ryan White Clinics, Federally Qualified Health Centers, and STD Clinics. Longs owns and operates over 30 pharmacies in the Southeast under the Avita and Longs brands. Headquartered in Brea, California, PharMedQuest provides integrated on-site pharmacy management solutions to Federally Qualified Health Centers. PharMedQuest owns and operates 28 pharmacies across California.
The combination of Longs and PharMedQuest unites two of the leading on-site pharmacy management services providers for Covered Entities, boasting a national presence stretching coast to coast. Executives from the Longs management team will join PharMedQuest in facilitating the integration of the companies and continued growth of Covered Entity pharmacy services.
“This is a very exciting opportunity, as joining these two mission-driven companies together will accelerate the significant growth that each company has experienced over the past several years” said Lorrie Carr, CEO of the Company. “We will bring the best of both companies together and deliver the highest quality care and services for our patients and Covered Entity clients.”
“This is a merger of two highly compatible, innovative and industry leading pharmacies,” said Christi Epps, former CEO of Longs. “We hold similar values and philosophies on doing business; providing quality customer service to our clients and patients with an emphasis on honesty and integrity.”
Chris Michalik, Managing Director of Kinderhook Industries, stated, “We are thrilled to combine these leading brands with established histories of providing high quality pharmacy solutions to thousands of patients. We look forward to sharing best operating practices between the companies as we continue to build the leading integrated pharmacy services provider for Covered Entities.”
Kirkland & Ellis LLP served as legal counsel to Kinderhook. Financing for the transaction was provided by a syndicate led by Madison Capital Partners, Audax Private Debt and Antares Capital.
About Kinderhook Industries
Kinderhook Industries, LLC is a private investment firm that manages over $3.0 billion of committed capital. We have made in excess of 225 investments and follow-on acquisitions since inception. Kinderhook’s investment philosophy is predicated on matching unique, growth-oriented investment opportunities with exceptional financial expertise and our proprietary network of operating partners. Our focus is on middle market businesses with defensible niche market positioning in the healthcare services, environmental / business services and automotive / light manufacturing sectors. We have a track record of successfully and consistently building industry leaders.
For more information, please visit: www.kinderhook.com
About Long’s Drugs
Headquartered in Columbia, South Carolina, Longs provides comprehensive pharmacy services and distributes specialty pharmaceuticals across the United States. Longs offers tailored pharmacy solutions for Covered Entities, including Ryan White Clinics, Federally Qualified Health Centers, and STD Clinics. Longs owns and operates over 30 pharmacies the Southeast under the Avita and Longs brands.
For more information please visit: https://protect-eu.mimecast.com/s/_g-wCZ8vjI5AWlySjZUsA?domain=longsrx.com
Headquartered in Brea, California, PharMedQuest is a leading pharmacy management company that provides integrated on-site and central fill pharmacy services to its Federally Qualified Health Center and other Covered Entity customers. The Company partners with Covered Entities to optimize pharmacy dispensing across PharMedQuest’s network of Company-owned pharmacies. PharMedQuest’s pharmacy expertise provides tremendous value to its Federally Qualified Health Center and other Covered Entity clients, both clinically and economically.