Kinderhook Industries’ majority acquisition of Long’s Drugs assigned the specialty pharmacy chain an enterprise value of $390 million, according to two people with knowledge of the deal.
Kinderhook bought the Columbia, South Carolina, pharmacy services company through existing portfolio company PharMedQuest Pharmacy Services, the New York firm said Dec. 4. Financial terms were not disclosed.
Existing investor Tailwind Capital will retain a minority stake in connection with the recapitalization, the announcement said.
Tailwind, a New York-based middle market private equity firm, invested in Long’s in March 2014. Healthcare Finance Group, a subsidiary of Fifth Street Finance, provided a $79 million financing facility in support of the deal, an announcement said at the time.
Long’s provides comprehensive pharmacy services and distributes specialty pharmaceuticals across the U.S. The company serves Ryan White Clinics, Federally Qualified Health Centers and STD Clinics, as well as owns and operates more than 30 pharmacies in the Southeast.
The two sources placed Long’s Ebitda at approximately $40 million.
PharMedQuest, of Brea, California, is a pharmacy management company that provides integrated on-site and central fill pharmacy services to Federally Qualified Health Centers. PharmMedQuest owns and operates 28 pharmacies across California.
Harris Williams offered sell-side financial advice on the transaction. Financing for the transaction was led by Madison Capital Partners, Audax Private Debt and Antares Capital.
Kinderhook and Tailwind didn’t immediately return requests for comment. PharmMedQuest and Long’s executives couldn’t immediately be reached. Harris Williams declined to comment.
Action Item: Reach Kinderhook Managing Director Christian Michalik at 212-201-6782